Performance and 

Accountability Report

Fiscal Year 2010 

T h e P e a c e c o r P s 
 

T H e P e A C e C o r P S 

Performance and 

Accountability Report

Fiscal Year 2010 

November 15, 2010 

Paul D. Coverdell Peace Corps Headquarters 

1111 20th Street NW, Washington, DC 20526 

A PDF version of this report is available at www.peacecorps.gov/docs.
 

Send feedback to the Peace Corps at the mailing address or at www. peacecorps.gov/contact us.
 
Where Peace Corps Volunteers Serve
 

Africa 

Latin America 

Belize Bolivia Colombia Costa Rica Ecuador El Salvador Guatemala 

Jordan Morocco 

North Africa and The Middle East 

Dominican Republic Eastern Caribbean: 

Antigua/Barbuda

 Dominica  Grenada/Carriacou  St. Kitts/Nevis  St. Lucia  St. Vincent/Grenadines 

Jamaica

The Caribbean 

Guyana Benin Honduras Botswana Nicaragua Burkina Faso Mexico Cameroon Panama Cape Verde Paraguay Ethiopia Peru Ghana Suriname Guinea 

Kenya Lesotho Liberia Madagascar Malawi Mali 

Mauritania Mozambique Namibia Niger Rwanda Senegal Sierra Leone South Africa Swaziland Tanzania The Gambia Togo Uganda Zambia 

Eastern Europe/ Central Asia 

Albania Armenia Azerbaijan Bulgaria Georgia Kazakhstan Kyrgyz Republic Macedonia Moldova Mongolia Romania Turkmenistan Ukraine 

Asia 

Cambodia China Indonesia Philippines Thailand 

Pacific Islands 

Federated States of  Micronesia, and Palau Fiji Samoa Tonga

Vanuatu 
Contents 

The Director of the Peace Corps iii
 

Management’s Discussion and Analysis 1
 

Overview of the Peace Corps 2
 

Mission and Organizational Structure 3
 

How Peace Corps Volunteers Serve Around the Globe 5
 

Comprehensive Agency Assessment 12
 

Looking Forward 14
 

Overview of FY 2010 Goals and Results 17
 

Analysis of Financial Statements 19
 

Analysis of Systems, Controls, and Legal Compliance 21
 

Management Assurances 22
 

Performance Section 23
 

Agency Performance 24
 

Annual Performance Results 26
 

Program Evaluation 48
 

Financial Section 57
 

Message from the Chief Financial Officer 58
 

Financial Statements 60
 

Notes to the Financial Statements 64
 

Inspector General’s Audit Transmittal Letter 76
 

Auditor’s Report 78
 

Other Accompanying Information 89
 

Inspector General’s Statement on the Peace Corps’ 

Management and Performance Challenges 90
 

Agency Response to the Inspector General’s Statement on the Peace Corps’ 

Management and Performance Challenges 97
 

Summary of Financial Statement Audit and Management Assurances Tables 102
 

Appendices 105
 

Appendix 1 – Summary of Audit Significant Deficiencies 106
 

Appendix 2 – Glossary of Acronyms 107
 
Natural resource management Volunteer 

works with local farmers to create an 

irrigation system to water soy fields. 
THE DIRECTOR OF THE PEACE CORPS 

WASHINGTON, D.C. 

I am pleased to present the Performance and Accountability report for fiscal year (FY) 2010 on behalf 

of the Peace Corps Volunteers and staff serving around the world. The financial and performance results 

are presented in this report so the President, the Congress, and the American people can assess the 

agency’s operations for this fiscal year. 

The Peace Corps traces its roots and mission to 1960, when then-Sen. John F. Kennedy challenged students at the University of Michigan to serve their country in the cause of peace by living and working in 

developing countries. From that inspiration grew an agency of the federal government devoted to world 

peace and friendship. President obama’s call to service has renewed that spirit of enthusiasm, commitment, and compassion. Peace Corps Volunteers are America’s best and most cost-effective grassroots 

development workers, building relationships from the ground up as partners with communities across 

the globe. 

Fifty years later, the three goals of the agency remain as relevant today as the moment in which they were 

first articulated: 

1. To help the people of interested countries in meeting their need for trained men and women. 

2. To help promote a better understanding of Americans on the part of the peoples served. 

3. To help promote a better understanding of other peoples on the part of Americans. 

While the mission and the core goals have not changed, operations within the Peace Corps are regularly 

modified and improved in response to the needs of the 77 host countries, where more than 8,600 Peace 

Corps Volunteers served in FY 2010—a 40-year high. 

Volunteer health, safety, and security remain top agency priorities. The inherent dangers of serving in 

developing countries are addressed through quality training, a committed staff, and well-functioning 

systems. Having served as a Volunteer in the Dominican republic from 1967 to 1970, I have the utmost 

appreciation for the extraordinary contribution made today by our Volunteers around the world and am 

personally committed to providing them with the best support possible. As part of my commitment to 

our Volunteers, on April 1, 2010, I increased the Volunteer readjustment allowance for each month of 

satisfactory service completed (payable upon return to the United States) to better support the cost of 

living increases experienced by Volunteers. This is the first allowance increase in 11 years. 

This past year (FY 2010) has been an exciting one for the Peace Corps, and one filled with constructive 

changes throughout the agency. Peace Corps Volunteers re-entered three countries (Colombia, Indonesia, 

and Sierra Leone) to establish new programs consistent with the needs of each of those countries. In 

addition, I realigned the organizational structure at headquarters to allow for better operational control 

and established four new offices: Global operations, Innovation, Intergovernmental Affairs, and Public 

engagement. 

one of the most important accomplishments in FY 2010 was the completion of an agency-wide 

assessment (The Peace Corps: A Comprehensive Agency Assessment), which was submitted to Congress 

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on June 14, 2010. This in-depth review evaluated operations across the agency, based on input from 

Volunteers, returned Volunteers, agency staff, host country partners, members of Congress and their 

staffs, and others. This assessment defined six key guiding strategies and made 63 recommendations to 

strengthen and reform the agency. 

In the second year of implementing the FY 2009–FY 2014 Strategic Plan, the Peace Corps’ three goals 

remain the focus of the agency’s strategic planning efforts. overall, the Peace Corps achieved success 

in 24 of its 36 (67 percent) measurable indicators. of the 12 indicators where performance was not met, 

three indicators achieved substantial results, nearly meeting the targets. 

Independent external auditors rendered an unqualified (clean) audit opinion on the Peace Corps’ financial statements for the fourth consecutive year, with no material weaknesses identified by the auditors 

or through internal managerial reviews. The agency’s success in reporting accountability was formally 

recognized by the receipt of the prestigious Association of Government Accountants’ Certification of 

excellence in Accountability reporting for the third consecutive year. 

The Peace Corps provides reasonable assurance that its internal controls and financial systems meet 

the specified objectives in Sections 2 and 4 of the Federal Managers’ Financial Integrity Act, as shown 

in the annual management assurance statement. Further, the agency’s financial system was successfully 

recertified and accredited during FY 2010, confirming our strong financial management foundation. 

The agency’s financial and performance data presented in this report are fundamentally complete and 

reliable due to the diligent efforts of the financial management and performance teams. 

The financial statements in the Financial Section reflect that the appropriated funds from Congress 

totaled $400 million in FY 2010 and $340 million in FY 2009, the largest year-to-year increase in 

history. Budgetary resources available from all years and all sources for use by the agency totaled $445 

million in FY 2010 and $373 million in FY 2009. The agency’s total assets increased from $177 million 

at the end of FY 2009 to the current level of $228 million as of September 30, 2010. 

Financial management improvements are shown in the Message from the Chief Financial officer, also in 

the Financial Section of this report. 

The passion, hope, empathy, and enthusiasm that motivated Volunteers in the 1960s still moves 

Volunteers today. I envision a Peace Corps that grows and adapts to the challenges and opportunities of 

our time; a Peace Corps that carries the torch of President Kennedy’s dream and responds to President 

obama’s call to service. I am truly honored to lead this agency as we approach our 50th anniversary of 

service in promotion of world peace and friendship. 

Sincerely, 

Aaron S. Williams, Director
 

November 15, 2010
 

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MANAGeMeNT’S DISCUSSIoN AND ANALYSIS 

Peace Corps Volunteer works in the 

Education sector in Malawi. She is 

helping a primary school implement 

a hand washing station to promote 

good hygiene among the students. 
 

 

 

 

Management’s Discussion and Analysis 

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Overview of the Peace Corps 

In 1961, President John F. Kennedy launched an 

innovative program to spearhead progress in developing countries and promote friendship between 

the American people and other men, women, and 

children throughout the world. Fifty years later, the 

mission and three goals that inspired the creation of 

the Peace Corps are not only still relevant, they are 

more important than ever in an increasingly complex, 21st century world. The passion that launched 

the Peace Corps is very evident in the lives of the 

more than 8,600 Volunteers who serve today. 

on the eve of the agency’s 50th anniversary, Peace 

Corps Volunteers continue to strengthen the capacity 

of host countries to address their development goals, 

to build a better understanding of Americans around 

the world, and to create greater knowledge about, and 

appreciation for, foreign countries and cultures here 

in the United States. The fact that requests for Volunteers still far exceed the Peace Corps’ capacity to 

place them within its budget is a clear and convincing measure of the Peace Corps’ importance to many 

nations and its impact around the world. 

Since its creation, over 200,000 Americans have 

served as Peace Corps Volunteers, living and working side-by-side with local community members in 

139 countries around the world. Based on the results 

achieved, the Peace Corps is widely recognized as 

a highly efficient and cost-effective mechanism for 

both community development and public diplomacy, 

simultaneously addressing host country needs for 

capacity building and contributing to ever greater 

levels of cross-cultural understanding between 

Americans and those they serve. 

Peace Corps Volunteers are among America’s best 

and most cost-effective grassroots development 

workers, magnifying the impact of public, private, 

and civil society investments at the community 

level and ensuring that efforts funded by others are 

community-owned and sustained. In addition, the 

Volunteers are highly effective ambassadors for 

peace and friendship, building relationships with 

strategic partner countries from the ground up in 

communities across the globe. 

Volunteers return to the United States eager and 

well-prepared to share what they have learned with 

friends, family members, co-workers, and the broader 

American public. For many Volunteers, this first 

exposure to international public service becomes a 

life’s calling, launching large numbers of returned 

Volunteers into careers dedicated to improving the 

lives of others. 

The Peace Corps balances the pursuit of its longstanding mission with the spirit of innovation. 

Today’s Peace Corps is faithful to the vision first set 

forth by then-Sen. John F. Kennedy and brought 

to life by generations of Volunteers. Today’s Peace 

Corps is also dedicated to bringing new ideas, fresh 

approaches, and five decades of promising practices 

together to ensure that Peace Corps remains in the 

vanguard of international volunteerism, community 

development, and cross-cultural exchange. 

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Management’s Discussion and Analysis 

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Mission and Organizational Structure 

Mission Statement 

The mission of the Peace Corps is firmly rooted in 

then-Sen. John F. Kennedy’s challenge to students 

at the University of Michigan in 1960 to serve their 

country in the cause of peace by living and working 

in developing countries. That mission—to promote 

world peace and friendship—remains as critical 

today as it was when the first generation of Peace 

Corps Volunteers was sworn into service in 1961. 

For almost 50 years, the Peace Corps’ mission has 

been expressed in three core goals: 

1. To help the people of interested countries in meeting their need for trained men and women 

2. To help promote a better understanding of Americans on the part of the peoples served 

3. To help promote a better understanding of other 

peoples on the part of Americans 

The agency’s approach to achieving these goals is 

unique within the U.S. government. Volunteers 

spend 27 months living and working alongside community members. They interact with their partners 

on a regular basis, eating the same food, living in the 

same types of houses, using the same transportation, 

and communicating in the local language. This builds 

mutual trust and understanding. Such interaction 

also sets the stage for a collaboration that allows Volunteers to address host country development goals at 

both the individual and community levels. 

Volunteers serve only in those countries where they 

have been invited by the host government. Today’s 

Peace Corps Volunteers serve in 77 host countries in 

Africa, Asia, the Caribbean, eastern europe/Central 

Asia, Latin America, North Africa/Middle east, and 

the Pacific Islands. 

Many Volunteers live and work with underserved 

populations in remote, isolated communities. others focus on those same communities within small 

towns and larger cities. Wherever they serve, the 

work of the Volunteers is focused on projects that fall 

into six sectors: 

Agriculture 

Business Development 

education 

environment 

Health and HIV/AIDS 

Youth 

The medium and long-term development outcomes 

achieved contribute to more stable communities, 

build strong people-to-people relationships, and 

expand the number of sustainable partnerships 

between the United States and other countries. 

These partnerships foster collaboration on a range 

of critical global issues, building a crucial foundation 

for peace and friendship for years to come. 

In keeping with the agency’s commitment to constantly improving its level of performance, the Peace 

Corps Director launched an independent, comprehensive assessment of the agency’s operations in 

December 2009. The recommendations have been 

endorsed by the agency’s senior leadership and will 

inform the Peace Corps’ work in the years to come. 

Peace Corps Volunteers must be U.S. 

citizens and at least 18 years of age. Peace 

Corps service is a 27-month commitment. To 

learn more about the Peace Corps, please 

visit our website: www.peacecorps.gov. 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 3 
 

Management’s Discussion and Analysis 

Director

Offi ce of Inspector

General 

Senior Advisor

White House Liaison 

Offi ce of the General

Counsel Offi ce of Innovation 

Deputy Director 

Offi ce of

Congressional

Relations 

Offi ce of Volunteer 

Recruitment and

Selection 

Offi ce of Public

Engagement 

Offi ce of

Communications

Offi ce of

Volunteer Support

Offi ce of

Safety and Security

Offi ce of Private

Offi 

Sector Initiatives

ce of Global

Operations 

Offi ce of Acquisitions 

and Contract

Management* 

Executive

Secretariat

Chief Compliance

Offi cer 

Offi ce of the Chief

Financial Offi cer* 

Offi ce of

Intergovernmental

Affairs 

Europe,

Mediterranean, and 

Asia Region

Africa Region 

Overseas

Programming and

Training Support 

Offi ce of AIDS 

Relief 

Peace Corps

Response 

Inter-America and

the Pacifi c Region 

Chief of Staff/

Operations

Offi ce of the

Chief Information

Offi cer* 

Offi ce of

Management 

American Diversity

Program* 

Overseas Posts Overseas Posts Overseas Posts 

Offi ce of Strategic

Information, Research

and Planning 

* In their functions as Chief Financial Officer, Chief Information Officer, American 

Diversity Program Manager, and the Chief of Acquisitions and Contract Management, the incumbents report directly to the Director. 

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Management’s Discussion and Analysis 

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How Peace Corps Volunteers Serve Around the Globe 

Volunteer activities are the primary way the Peace 

Corps delivers assistance to host countries and the 

central method for meeting the agency’s three goals. 

By living in the community for two years, Volunteers 

transfer skills both on and off the job, responding to 

organizational and grassroots community needs at 

the local, regional, and/or national levels. By learning 

the local languages, appreciating local cultural traditions, and sharing their knowledge about America, 

Volunteers support the cross-cultural goals of Peace 

Corps in addition to their technical activities. 

Volunteer activities fall into six sectors: agriculture, 

business development, education, environment, 

health and HIV/AIDS, and youth. Additionally, Volunteers working in all sectors may incorporate the 

following initiatives into their activities: information and communication technology (ICT), women 

in development/gender and development, and HIV/ 

AIDS and youth development. 

Volunteer Sectors 

Agriculture 

4% 

Environment 

13% 

Business 

Development 

14% 

Education 

37% 

Other 

5% 

Health and 

HIV/AIDS 

22% 

Youth 

5% 

Education 

education is the largest technical area for the Peace 

Corps, with 37 percent of the Volunteers working in 

educational settings. education Volunteers assist 

teachers, schools, and communities to better prepare 

students for their active participation in a globalized world. Volunteers work directly in schools in 

the following ways: classroom teaching; developing 

after-school activities; co-teaching or team teaching; 

developing workshops for teachers on participatory and experiential learning methods; developing 

classroom resources; and promoting strong ParentTeachers’ Associations and community involvement 

in education. 

The Peace Corps’ four current cross-cutting 

initiatives—women in development/gender and 

development, youth development, information and 

communication technology (ICT), and HIV/AIDS— 

play a central role in education projects, both in and 

out of the classroom. After-school activities, such as 

clubs, theater groups or women’s and girls’ empowerment groups, incorporate these cross-cutting 

initiatives consistent with community needs. 

education projects cluster in six different areas and 

cut across all levels, including pre-school, primary, 

secondary, university, and teacher training colleges: 

Teaching English as a Foreign Language (TEFL) 

Volunteers serve directly as classroom teachers or 

team/co-teach with local teachers in primary, middle, and high schools. They teach english as a foreign 

language, often incorporating content that is relevant 

to the communities in which they live and work. For 

example, in the African context, Volunteers integrate 

health and HIV/AIDS prevention in their classrooms. 

Finally, Volunteers serve as models to local teachers 

in learner-centered methodologies and approaches 

to teaching. 

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Management’s Discussion and Analysis 

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Mathematics, Science, ICT 

Volunteers teach mathematics, science, and/or 

ICT to primary, junior high, or secondary school 

students. They engage students using real life applications of these subjects and pay particular attention 

to encouraging girls to succeed in these subjects. 

Special Education 

Volunteers work in schools or organizations that specifically cater to students with special needs, such as 

schools for the deaf or vocational schools for youth 

with disabilities. Volunteers also work within the 

general school system to train teachers on inclusive 

education practices for students with special needs. 

An important part of Volunteers’ work is with parents and communities to create support groups, as 

well as to raise public awareness and appreciation for 

people with disabilities. 

Teacher Pedagogy 

From their own K-16 education in American schools, 

Volunteers bring a rich experience as active learners. 

They facilitate local teachers by using participatory, 

student-centered methodologies, such as debates, 

drama, role playing, group work, class discussions, competitions, science experiments, computer 

research, and class projects. Volunteers in many 

countries are trained in service learning, community 

content-based instruction or content-based TeFL 

and are able to connect the classroom subject area 

content to important life issues and to Peace Corps 

initiatives such as protecting the environment, preventing HIV/AIDS, leadership skills, and community 

service for youth. 

Youth Development 

Youth Development Volunteers incorporate important life skills into their lessons. They promote 

student-centered teaching, the development of 

critical thinking and problem-solving skills, and 

materials designed to connect students’ learning 

to the world around them. In addition to classroom 

work, Volunteers organize and support after-school 

clubs and various kinds of winter and summer 

vacation camps to empower youth for school and 

community leadership roles. 

Community Development 

education Volunteers are also engaged in community projects. Volunteers use the strong relationships 

they have forged with young people, parents, and 

other community members to launch village-based 

projects with children or youth, including out-ofschool youth, adults, marginalized populations, and 

elders. 

examples of Volunteer work in education: 

Working with their partner teachers, Volunteers 

in Mozambique teach lessons on HIV/AIDS, 

malaria, and cholera in their science and 

english classes. 

Volunteers in Panama integrate leadership, 

youth development, strategic planning, and 

tourism into their english classes. 

Cape Verde has a strong vocational education 

program focusing on teaching skills relevant 

for island development projects. one Volunteer 

trains teachers to run a practical lab centered on 

fundamentals of electricity and safe electrical 

work methods. Lab practices include safety and 

security in the workplace, installation of electric 

appliances and meters, repair of appliances, and 

basic residential electrical work and wiring of 

houses. 

Volunteers have helped address a teacher 

shortage resulting from the high prevalence 

of HIV/AIDS in Lesotho. Several Volunteers 

act as resource teachers for isolated schools in 

the mountains, walking or biking from school 

to school to teach model classes, and conduct 

lunch-time and after-school workshops for 

teachers. Thousands of teachers come together 

during their vacations at Lesotho College of 

education to earn credit to become certified 

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Management’s Discussion and Analysis 

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teachers. Peace Corps Volunteers contribute by 

teaching methodology, social studies, english, 

and music. 

Volunteers in Belize, Ghana, Jordan, and 

Kenya work in special education projects with 

special needs children in the pre-school and 

primary schools. 

Health and HIV/AIDS 

Peace Corps health projects target the specific health 

risks and needs of the various regions the agency 

serves. Africa health projects focus on malaria and 

HIV/AIDS; Inter-America and Pacific projects 

focus on Water, Sanitation and Hygiene; and the 

Inter-America and Pacific region and the european, 

Mediterranean and Asia region focus on noncommunicable diseases. Additionally, Volunteers address a 

common set of health issues, including HIV/AIDS, 

hygiene, maternal-child health, and healthy diets. 

Health education benefits youth across all regions, 

both in and out of school. Peace Corps’ core 

approaches include increasing knowledge about 

common diseases and health issues, promoting 

behavior change, and capacity building among community members, community health workers, and 

grassroots organizations to prevent and mitigate the 

major causes of morbidity and mortality. 

Volunteers working on HIV/AIDS prevention and 

care often focus exclusively on that one issue (or as 

part of a comprehensive community health project). 

Life skills training continues to be at the center of 

Volunteers’ HIV/AIDS prevention work, particularly when targeting youth. Increasingly, Volunteers 

are assigned to HIV/AIDS-related nongovernmental 

organizations and assist in increasing the technical, 

managerial, and administrative capacities of these 

groups. The Peace Corps is collaborating with the 

U.S. Department of State’s office of the Global AIDS 

Peace Corps Response Volunteer works in the Education sector in Liberia. She is teaching midwives 

remedial math that will help them in the pharmacy. 

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Coordinator to support the U.S. government’s commitment to worldwide HIV/AIDS care, prevention, 

and treatment through the President’s emergency 

Plan for AIDS relief (PePFAr). 

examples of Volunteer work in this sector include: 

Increasing the awareness of hand washing 

benefits among students by working with Junior 

red Cross members to facilitate hand washing 

drills for students and by producing a drama 

and murals on the importance of hand washing. 

(Fiji) 

establishing a partnership with the President’s 

Malaria Initiative and participating in the 

Malaria operational Plan meetings. As a 

result, the President’s Malaria Initiative 

earmarked funds to support a third-year 

malaria coordinator Volunteer and instructed 

those implementing such programs to partner 

with Volunteers in the field. Volunteers and 

their counterparts have distributed long lasting 

insecticide-treated nets and provided follow-up 

education to communities in the use of the bed 

nets and the prevention of malaria. (Benin) 

Strengthening data management systems to 

assist organizations in better tracking HIV/ 

AIDS patients and locating patients for followup care. (Ethiopia) 

Developing a men’s HIV/AIDS awareness 

campaign targeting billiards, soccer 

tournaments, and men’s group meetings, 

resulting in 1,383 adult education sessions 

provided to formal and informal groups. 

(Nicaragua) 

Promoting basic health education in Koranic 

and bilingual Arab-French-speaking schools, 

reaching children who are not mainstreamed 

into the regular education system, and 

translating the Peace Corps Life Skills Manual 

into Arabic. (Burkina Faso, Morocco, and 

Rwanda) 

Business Development 

This sector includes four subsectors: enterprise 

development, community, municipal, and organizational development. Volunteers are assigned to 

projects that teach business, organizational, and 

communication skills in local government offices, 

nonprofit agencies, and for-profit businesses. 

recently, work in this sector has shifted from 

business consulting to community economic development, emphasizing sustainability, transparency, 

volunteerism, and leadership. The number of business Volunteers continues to grow as efforts intensify 

to assist underserved communities and to expand 

entrepreneurial skills for women and youth. 

Enterprise Development: Volunteers train and 

advise entrepreneurs and managers in business 

planning, marketing, financial management, product 

design, and distribution. They advise cooperatives, 

assist with credit programs, and facilitate or teach 

business workshops. Volunteers help people launch 

or expand businesses, including small-scale agribusiness (fruits, vegetables, and small livestock) and 

ecotourism ventures. They help small businesses 

develop market linkages, including Web-based 

methods. others help disadvantaged groups enter 

the workforce by learning to write resumes and hone 

interviewing skills. These groups include orphans, 

at-risk youth, and victims of trafficking. 

Community Development: Volunteer activities 

focus on empowering communities to address their 

issues at a local level by facilitating community 

mobilization, needs assessments, project planning, 

resource management, and monitoring and evaluation. Volunteers are often catalysts for change and 

define their particular roles in response to their 

host communities. Community development projects may encompass any combination of disciplines 

depending on local priorities and resources. 

Municipal Development: Working with local or 

regional municipalities, Volunteers help engage residents in local administrative processes. They assess 

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the impact of proposed activities on communities, 

such as economic and environmental initiatives; 

facilitate long-term strategic planning; and provide 

support to newly decentralized economies. 

Nongovernmental Organizational Development: 

Volunteers work with local and national nongovernmental organizations (NGos) to increase their 

organizational capacity and sustainability, helping to 

make these organizations more effective. Volunteers 

train and assist staff to create strategic plans and 

fundraising campaigns; develop public awareness 

campaigns; develop mission statements and bylaws, 

and other NGo governance; facilitate civic education 

and promote volunteerism; and increase NGos’ outreach. 

examples of Volunteer work in this sector include: 

Delivering five-day seminars on agribusiness 

to facilitate the transition from subsistence to 

market-driven production. (Panama) 

Developing business partnerships between a 

Bangkok natural fertilizer factory and local 

villagers to save farmers money and provide 

a more environmentally-friendly product. 

(Thailand) 

Training and supporting young people in the 

Amerindian village of Kwamalasemutu in the 

traditional method of making beaded aprons. 

(Suriname) 

Teaching plastic recycling and biodegradable 

technology for plastic bottles. The one-year pilot 

trials moved to commercial scales, making a 

positive environmental impact. (Mexico) 

redesigning the national curriculum with the 

Ministry of education to incorporate Peace 

Corps’ La Empresa Creativa (The Creative 

Business) entrepreneurship course in the 

national curriculum. (Nicaragua) 

Promoting self-employment and 

entrepreneurship for youth through training 

courses. As a result, 38 unemployed youth 

gained personal management and organization 

skills, bookkeeping methods, and information 

about how to write resumes. (Mauritania) 

Developing after-school activities, including 

youth clubs that facilitate debates about civil 

society, principles of democracy, and voting 

rights. (Romania) 

Environment 

Volunteers working on environmental projects help 

strengthen a community’s ability to conserve and 

use natural resources by working at the grassroots 

level. They focus on human needs and sustainable 

alternatives, implementing activities through environmental clubs and eco-camps. In some areas, 

schools and communities are connected for the first 

time as parents and youth work together to identify 

joint projects, such as bottle recycling or community 

clean-up days. 

examples of Volunteer work include: 

Making classrooms, visitor centers, and 

latrines out of plastic bottles filled with garbage. 

(Guatemala) 

Accessing global campaigns such as World 

Water Monitoring Day that provided water test 

kits to Volunteers and communities. (Romania) 

Developing environmental education programs, 

such as the “My Protected Area” project, which 

taught students how to communicate the 

importance of their respective protected areas. 

(Honduras) 

Designing annual operational plans, 

holding regional meetings with tourism 

service providers, and working as a regional 

marketing coordinator to increase marketing 

opportunities for sustainable rural tourism 

services. (Guatemala) 

Developing an environmental pen pal project 

between environmental clubs to facilitate 

discussion and problem-solving of local 

environmental issues between student peers 

from different parts of the country. (Armenia) 

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Management’s Discussion and Analysis 

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Peace Corps hosted young leaders from 46 African nations for a forum on Civic Engagement on 

August 4. This was part of President Barack Obama’s Young African Leaders Forum designed 

to help leaders exchange ideas and engage U. S. citizens and government officials concerning 

issues key to the future of Africa, where nearly 40 percent of the Peace Corps Volunteers serve. 

Implementing a reforestation plan and raising 

awareness through training on how to care for 

trees for 100 households in collaboration with 

neighborhood leaders. (Mauritania) 

Youth 

recent figures estimate that 68 percent, or roughly 

two-thirds, of all the people with whom Volunteers 

work are young men and women under the age of 25. 

Volunteers work with youth in all sectors, but youth 

development is unique in the Peace Corps as it is both 

a project sector area—designed to support the assets 

and capacities of young people—and an agency initiative that promotes an approach that can be used to 

strengthen the overall impact of the Volunteers’ work 

in a community. 

The Peace Corps’ approach to working with young 

people emphasizes valuing youth as resources to 

be developed, rather than as problems to be solved; 

including youth in all aspects of an activity; and 

building on capacities already in place. 

Volunteers’ work in this sector includes such activities as: 

Providing youth exchange programs, trainings, 

parliaments, and forums on different topics, 

including gender equality and human rights, 

HIV/AIDS, and roma integration. (Bulgaria) 

Creating a manual, Girls Leading Our 

World, that explains volunteerism and civic 

participation and outlines how girls can start 

clubs in their communities. The manual was 

introduced at a two-day camp. (Jordan) 

Leading “Camp Superman,” an inaugural 

formal camp for adolescent boys. Boys learned 

teamwork and communication skills to resolve 

conflicts and were educated about HIV/AIDS 

prevention. Volunteers and the camp attendees 

defined their ideal “Superman,” and used games, 

challenges, and competitions to suit a masculine 

learning style, with time for processing and 

reflection. (Dominican Republic) 

Collaborating with “Hole in the Wall Camps,” 

a five-year program to run summer camps 

for HIV-positive children. Ten Volunteers 

participated as camp leaders and 45 HIVpositive children were invited to join the camp. 

(Dominican Republic) 

Increasing student participation in “The 

Writing olympics,” a large-scale english 

creative writing competition focused 

on independent thought and personal 

empowerment held in many schools. 

(Azerbaijan) 

Forming small business groups that train 

youth in small businesses skills such as jewelry 

making and baking. (El Salvador) 

Agriculture 

Agriculture Volunteers find themselves on the frontline of food security and climate change as global 

commitments grow to address these issues. Their 

projects promote environmentally sustainable and 

organic farming practices by focusing on the longterm productivity of farmers’ fields. Volunteers 

work with farmers to maintain and improve soils 

and manage water resources, using techniques that 

incorporate local, natural inputs to control pests and 

erosion. 

Sustainable production practices also promote food 

security. Agriculture projects address food secu10 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

 

2005 2006 2007 2008 2009 2010

Management’s Discussion and Analysis 

•	

•	

•	

•	

•	

•	

rity issues by promoting crop diversification and 

encouraging production of more nutritious foods. 

Volunteers work with men and women on their field 

crops, vegetable gardens, small animal husbandry 

efforts, fisheries, and beekeeping. Using a value 

chain approach, Volunteers assist in developing new 

value-added products, securing the storage and marketing of these products, and helping communities 

and farmers implement agroforestry techniques that 

conserve soils. 

Agriculture Volunteers often work with women’s 

associations or youth clubs as their primary partners. 

examples of Volunteer work in this sector include: 

Training and partnering with farmers on pilot 

projects to extend promising agroforestry/ 

agricultural practices to other farmers through 

activities such as “field days,” which many 

farmers attend. (Senegal) 

Developing school gardens to increase the 

nutritional intake of students while also 

bringing in revenue for the school. (Togo) 

Developing networking opportunities for 

women leaders in agriculture to strengthen 

their participation in sustainable community 

natural resources management. This results in 

an increase in food security, creates additional 

sources of income, and increases female 

leadership in the community. (Honduras) 

Developing the “Seeders’ Group,” a Volunteerrun seed bank to make horticultural and 

tree seeds available to community partners. 

(Panama) 

Teaching potholing technology to counterparts 

and farmers to increase their crop yields 

by using smaller portions of land. This 

conservation farming practice involves digging 

small potholes in crop fields and filling them 

with concentrated natural fertilizers and soil 

conditioners, and rotating crops with nitrogenfixing plants to produce more food on less 

land with few inputs and little animal or other 

technology. (Zambia) 

Conducting value chain analysis on the shea 

nut to incorporate conservation of shea agroecosystems and tree care in order to improve 

harvesting and production and increase market 

linkages. (Mali) 

The on-board count for all Peace Corps Volunteers 

and trainees, and Peace Corps response Volunteers, 

from all funding sources serving under the Peace 

Corps as of September 30, 2010, was 8,655. This 

number included 395 Volunteers funded by the President’s emergency Plan for AIDS relief (PePFAr). 

The increase in the number of Volunteers in FY 2010 

was directly related to the increase in appropriated 

funds for the agency. The on-board count includes 

posts in which the Peace Corps is active or suspended, 

but not closed. 

Peace Corps was ranked No. 5 among 34 

small agencies in the nonprofit Partnership 

for Public Service’s “Best places to Work in 

the Federal Government.” 

Number of Volunteers 

7,810 7,749

8,079

7,876

7,671

8,655

8500

9000

Volunteers

8000

7500

7000

Fiscal Year

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 11 
 

Management’s Discussion and Analysis 

0

Comprehensive Agency Assessment 

During his confirmation hearing, Director Williams 

made a commitment to Congress to conduct a comprehensive assessment of the agency.  As the Peace 

Corps prepares to celebrate 50 years, the Director 

thought it was critical to pause and assess agency 

operations and guarantee we were not only honoring 

our rich history, but also preparing for the future. 

The Peace Corps Appropriations Act of December 16, 

2009, included a provision requiring the Director of 

the Peace Corps to submit a report to the Committees on Appropriations on the findings of an Agency 

Comprehensive Assessment in the areas listed below: 

1.	 Improving the recruitment and selection 

process to attract a wide diversity of highly 

and appropriately skilled Volunteers 

2.	 Training and medical care for Volunteers and 

staff, as appropriate 

3.	 Adjusting Volunteer placement to reflect 

priority United States interests, country 

needs and commitment to shared goals, and 

Volunteer skills 

4.	 Coordinating with international and hostcountry development assistance organizations 

5.	 Lowering early termination rates 

6.	 Strengthening management and independent 

evaluation and oversight 

7.	 Any other steps needed to ensure the effective 

use of resources and Volunteers, and to 

prepare for and implement an appropriate 

expansion of the Peace Corps 

The Director also asked the assessment team to 

address how the agency can best strengthen Third 

Goal activities and agency reporting mechanisms. 

relying heavily on contributions from across the 

entire Peace Corps community overseas and in 

the United States, as well as a variety of external 

observers, the Comprehensive Agency Assessment 

developed a strategic vision, six strategies, and 63 

recommendations that will serve as a guide for the 

Peace Corps over the next decade.  The assessment 

provides a roadmap to strengthen and reform agency 

operations and identifies necessary investments for 

quality improvements, which will allow the agency to 

more powerfully address future challenges. 

CollegeGrad.com named the Peace Corps
 

the No. 5 Top Entry Level Employer
 

in FY 2010
 

The six recommended strategies are: 

1.	 Target the Peace Corps’ resources and country 

presence across countries according to 

specific country selection criteria to maximize 

grassroots development impact and strengthen 

relationships with the developing world 

2.	 Focus on a more limited number of highly 

effective technical interventions that will 

enable the Peace Corps to demonstrate impact 

and achieve global excellence 

3. 	 embrace generalist Volunteers, recruit them 

while recognizing the competition for their 

services, and provide them with training 

and comprehensive support for success in 

their project areas and community outreach 

activities 

4.	 Make Peace Corps response an engine 

of innovation by piloting new programs 

to expand the Peace Corps’ presence and 

technical depth and increase overseas service 

opportunities for talented Americans 

5.	 Actively engage Volunteers, returned 

Volunteers, and the American public 

through strong partnerships with private 

sector companies, schools, civil society 

organizations, returned Peace Corps 

Volunteer groups, and government agencies 

to increase understanding of other cultures 

12 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

Management’s Discussion and Analysis 

and generate commitment to volunteerism 

and community service as a way to “continue 

service” 

6.	 Strengthen the Peace Corps’ management 

and operations by using modern technology, 

innovative approaches, and an improved 

business process that will enable the agency to 

effectively carry out this new strategic vision 

The Comprehensive Agency Assessment was 

delivered to the Committee on Appropriations on 

June 14, 2010. 

Peace Corps is “greening” to 

support energy efficiency, resource 

conservation, and environmental 

stewardship. In a sampling of 

some agency initiatives, The Washington 

Post cited the Peace Corps for “creating 

an exchange for unused office supplies... 

and reducing its paper consumption by 

25 percent by using both sides of all office 

paper.” 

Business Volunteer teaches basic business techniques and marketing skills to local artisans such as a 

women’s basket making co-op. 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 13 
 

Management’s Discussion and Analysis 

0

Looking Forward 

The Peace Corps will commemorate its 50th anniversary in 2011. over the course of the year, the Peace 

Corps will recognize this landmark occasion by reaffirming the agency’s core goals and celebrating the 

unqualified success of its Volunteer program. The 

Comprehensive Agency Assessment lays out a strategic vision and a set of concrete recommendations 

that will guide the agency’s work in the years to come. 

Director Williams has stated, “The assessment is our 

blueprint for the future.” 

As detailed elsewhere in the Performance and 

Accountability report, based on the six strategies 

and 63 recommendations identified through the 

Comprehensive Assessment process, the agency has 

embarked upon reform of the agency’s operational 

systems, a strategic portfolio review, growth in the 

number of Volunteers, and a variety of other operational improvements over the next decade. These 

steps have re-energized the agency and a variety of 

stakeholders around the world, producing a renewed 

sense of purpose. 

Implementation of the six recommended strategies will be the hallmark of the agency’s work in FY 

2011. The assessment team and the field working 

group constituted in FY 2010 will carry the process 

forward in FY 2011, working closely with agency 

operating units at headquarters and in the field. The 

process will continue to be one that is rigorous, disciplined, and highly inclusive. 

The assessment team consulted extensively with 

multiple stakeholders during the assessment process, 

including posts and headquarters staff, currently 

serving Volunteers (individuals and Volunteer Advisory Committees at more than 20 posts), returned 

Peace Corps Volunteers (rPCVs), the National Peace 

Corps Association, leaders in the field of international 

development, Peace Corps critics and supporters, 

numerous “Friends of” committees, the office of 

Management and Budget (oMB), and members of 

Congress. The final report has met with a highly 

favorable response from a variety of stakeholders, 

including members of Congress, oMB, the National 

Peace Corps Association, and other members of the 

rPCV community. 

The recommendations from the assessment will be 

incorporated as operational strategies within the 

agency’s Strategic Plan (FY 2009-FY 2014) during the FY 2011 mid-cycle review of that plan and 

progress toward its implementation will be tracked 

through quarterly, mid-year, and end-of-year 

reviews. 

Growth 

In FY 2010, the agency established the office of 

Global operations to provide overarching support 

and management of the three geographic regions, the 

office of overseas Programming and Training Support, Peace Corps response, and the office of AIDS 

relief. The goal was to identify and implement key 

best practices, streamline operations, and advocate 

for field operations. 

In FY 2010, Global operations oversaw the re-entry 

into three countries. Based on recommendations 

detailed in the Comprehensive Assessment, a process 

has been established for a rigorous and systematic 

portfolio review prior to any decision on entering or 

re-entering countries. 

The agency saw a growth of 9 percent in Volunteers 

in FY 2010 and is preparing for a nearly 9 percent 

growth in Volunteers in FY 2011. 

The agency will increase its efforts to recruit and 

field Volunteers through a variety of new techniques, 

including an expanded use of social media networks. 

The majority of these Volunteers will be generalists 

who will receive intensive training for their Peace 

Corps assignments. 

14 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

 

Management’s Discussion and Analysis 

Peace Corps response, a program for returned Peace 

Corps Volunteers who wish to return to Peace Corps 

service for shorter terms, more than doubled the 

number of Volunteers in FY 2010 to 200 and is projected to expand to 400 Volunteers in FY 2011. Peace 

Corps response Volunteers will continue to take a 

lead role in re-entering countries and will also help to 

meet the agency’s need for technical experts. 

In FY 2011, it is expected that the Africa region will 

see growth in the following sectors: education (specifically, girls’ education, math, and science), health, and 

food security. Inter-America and the Pacific region 

anticipate growth in: education (particularly teaching english as a foreign language (TeFL)), health, 

and youth development. Finally, the european, Mediterranean and Asia region projects growth in: TeFL, 

health, and youth development. 

eighty percent of the Peace Corps’ FY 2011 budget 

supports direct Volunteer operations. 

Strategic Partnerships 

As Peace Corps celebrates its 50th anniversary, the 

agency will seek innovative ways to increase Peace 

Corps’ impact both domestically and abroad. Strategic partnerships provide a mechanism for the Peace 

Corps to recruit the next generation of Volunteers, 

increase developmental impact, and further the 

agency’s initiatives to strengthen Third Goal activities and rPCV employment. Therefore, the agency 

has taken steps to establish mechanisms to effectively leverage partnerships to accomplish agency 

priorities and contribute to a whole-of-government 

approach to meet overarching U.S. government priorities. 

The agency partnered with five AmeriCorps groups in 

FY 2010 in an effort to attract more Volunteers with 

a proven commitment to community development. 

Through these partnerships, the agency expects to 

find more Volunteers like a currently-serving Peace 

Corps Volunteer in eastern europe who began his 

public service as an AmeriCorps National Civilian 

Peace Corps received the 2010 Presidents’ 

Award from the Teachers of English to 

Speakers of Other Languages, Inc. for 

important contributions to develop and 

maintain professional expertise in English 

language teaching and learning for speakers 

of other languages worldwide. 

Community Corps member. His AmeriCorps service 

helped to prepare him for the Peace Corps. 

In FY 2010, one year into Director Williams’ administration, the Peace Corps signed new partnership 

agreements with five AmeriCorps groups and eight 

Minority Serving Institutions to strengthen general 

and diversity recruitment efforts and to increase 

our exposure among the country’s leading volunteerism and service organizations.  The agency also 

signed two new partnership agreements with leading international nongovernment organizations and 

five new interagency agreements (U.S. Department 

of State, the environmental Protection Agency, the 

Millennium Challenge Account, and two with the 

U.S. Agency for International Development). These 

agreements support post programming and training 

to enhance the developmental impact of Volunteers. 

In FY 2011, the Peace Corps will continue to look at 

expanding its partnerships with other government 

agencies and with organizations that are at the forefront of efforts to train community leaders. 

Partnering with other service and development organizations will continue in order to both accomplish 

agency priorities and contribute to a governmentwide approach to meet overarching priorities on 

global issues such as food security, HIV/AIDS, and 

basic education. 

Volunteer Health and Safety 

Keeping Peace Corps Volunteers healthy and safe 

in the challenging circumstances under which they 

serve is a key concern. Director Williams has stated, 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 15 
 

 

 

 

 

Management’s Discussion and Analysis 

“Keeping our Volunteers safe and healthy is our top 

priority every day.” In FY 2010, the agency reorganized the system for providing medical care to 

Volunteers. This reform included (though is not limited to) strengthening accountability and realigning 

the reporting structure to enable the office of Volunteer Support to have a more direct approach to the 

management of overall quality and delivery of our 

health care. 

The office of Safety and Security, in collaboration 

with the new office of Global operations, began to 

modernize the management of the Volunteer safety 

and security system. 

In the coming year, renewed attention will be given 

to Volunteer health and safety processes, including 

incorporating recommendations from the Inspector 

General’s audit into the work of the office of Safety 

and Security. In addition, the agency will realign the 

safety and security reporting structure with clearer 

lines of authority. 

Additional resources in FY 2011 will strengthen 

these two key offices that support the health and 

safety of our Volunteers. 

Third Goal 

FY 2011 will see a continuation of the emphasis on the 

Third Goal that began in FY 2010. Ambitious targets 

have been established to drive performance in this 

critical area of citizen diplomacy. Director Williams’ 

emphasis on the Third Goal is rooted in his belief in 

the valuable role played by Peace Corps Volunteers 

in engaging with the outside world at this particular 

moment in American history. 

Summary 

The Peace Corps has adapted and responded to the 

issues of the times, mindful of the basic mission 

to be a force for change in the communities where 

Volunteers serve.  In an ever-changing world, Peace 

Corps Volunteers meet new challenges with innovation, creativity, determination, and compassion. 

From AIDS education and emerging technologies 

to environmental preservation and income generating ideas, Volunteers help people to build better lives 

for themselves.  The coming year offers tremendous 

opportunities for the Peace Corps community to 

share its vision for the future with the American public and inspire the next generation of Volunteers. 

The Peace Corps released its first Open 

Government Plan at 

www.peacecorps.gov/open as part of 

President Obama’s efforts to make the 

federal government more transparent. 

It received special recognition in a White 

House press release stating, “Independent 

agencies are not mandated to participate, 

though many, like the Peace Corps and the 

Corporation for National and Community 

Service, have taken on the challenge to open 

their practices to greater transparency and 

public participation.” 

16 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

- -

   

   

   

Management’s Discussion and Analysis 

0

Overview of FY 2010 Goals and Results 

FY 2010 Overview of Performance 

Program performance improved slightly in FY 2010. 

This Performance and Accountability report is 

based on the agency’s performance in the second year 

of implementing the FY 2009-2014 Strategic Plan 

available at http://www.peacecorps.gov/open/. The 

agency measures the Strategic Plan through a set of 

38 indicators. 

The Peace Corps met 24 of 36 measurable performance indicators with targets for FY 2010 (two do 

not have targets but were monitored). The results for 

FY 2010 represent a 3 percent increase over FY 2009. 

Strategic Goals and Agency Core Goals 

The Peace Corps’ Strategic Plan identifies five strategic goals the agency seeks to achieve between 

2009 and 2014. Three of the five goals align with the 

agency’s three core goals; two goals address effective 

management and support of Volunteers. 

Outcome Goals and Performance Goals 

each strategic goal is supported by outcome goals 

that define the results the agency expects to achieve 

in order to reach each of its long-term strategic goals. 

In turn, each outcome goal is supported by one or 

more performance goals, which define the concrete, 

measurable objectives the agency expects to achieve. 

Performance Indicators 

Performance indicators, with measurable targets, 

are set for each performance goal. The indicators 

allow the agency to measure and report on progress 

toward its long-term organizational goals and are 

used throughout the year to inform and improve 

operations. 

Outcome Goals (9)

Performance Goals (14)

Performance Indicators (38)

Strategic

Goals (5)

Reporting Procedures and Data Quality 

The Peace Corps is committed to providing transparent and reliable data for managerial decision-making 

and oversight. The office of Strategic Information, 

research, and Planning oversaw the work of the 

posts and headquarters offices to ensure continuity 

and reliability of the performance data reported by 

the agency. 

The agency continued the practice of conducting 

quarterly reviews of key performance indicators and 

focused particular attention on the mid-cycle review, 

reviewing performance results during the mid-year 

Year to Year Indicator Overview 

Description FY 2009 FY 2010 

Targets Met (Number) 23 of 36 24 of 36 

Targets Met (Percentage) 64% 67% 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 17 
 

 

 

Management’s Discussion and Analysis 

budget reviews to reinforce performance and budgeting alignment. This integrated mid-year assessment 

allows for the redirection of agency resources in consideration of challenges and/or achievements. 

The agency performance data are collected from 

three principal sources. Data for 12 of the 38 indicators are gathered directly from Peace Corps 

Volunteers through the Annual Volunteer Survey. 

The survey results represent the views of 81 percent 

of the Volunteers serving during the summer of 2010 

and ensure that Volunteers provide direct feedback 

into the agency’s planning and performance evaluation process. Headquarters offices provide annual 

data for 20 indicators. The majority of the data for 

these indicators are collected and housed in the 

Peace Corps Volunteer Database Management System. Peace Corps posts provide information for six of 

the 38 indicators. Two of the 38 indicators are monitored and reported on, but do not have targets. 

The Peace Corps’ FY 2010 performance results are 

based on reliable and valid data that are complete as 

of the compilation of results at the end of the fiscal 

year. The agency places great value and emphasis on 

continuously improving its performance reporting 

procedures and processes. 

The Peace Corps’ Mission is to Promote World Peace and Friendship 

PEACE CORPS CORE GOALS 

1. To help the people of interested countries in meeting their need for trained men and women 

2. To help promote a better understanding of Americans on the part of the peoples served 

3. To help promote a better understanding of other peoples on the part of Americans 

Strategic Goal 1 

enhance the 

capacity of 

host country 

individuals, 

organizations, and 

communities to 

meet their skill 

needs 

Strategic Goal 2 

Promote a better 

understanding 

of Americans 

on the part of 

host country 

individuals, 

organizations, 

and communities 

served by 

Volunteers 

Strategic Goal 3 

Foster outreach 

to Americans 

through agency 

programs that 

assist Volunteers 

and returned 

Peace Corps 

Volunteers to help 

promote a better 

understanding 

of other peoples 

on the part of 

Americans 

Strategic Goal 4 

Provide 

Volunteers 

who represent 

the diversity of 

Americans to 

meet the evolving 

technical needs of 

host countries 

Strategic Goal 5 

Implement the 

Peace Corps 

mission in an 

effective and 

efficient manner 

through the 

provision of high 

quality Volunteer 

support with 

optimal health 

care, safety and 

security support, 

and effective 

management of 

resources 

18 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

Management’s Discussion and Analysis 

0

Analysis of Financial Statements 

Overview 

For the fourth sequential year, an unqualified (clean) 

audit opinion was achieved on the FY 2010 financial statements. During this fiscal year, the agency’s 

financial system was successfully recertified and 

accredited. The Congressional appropriation totaled 

$400 million in FY 2010 and $340 in FY 2009. This 

overall increase of $60 million was the highest yearto-year increase in appropriated funding from the 

Congress in history. Budgetary resources available 

from all years and all sources for use by the agency 

totaled $445 million in FY 2010 and $373 million 

in FY 2009. The agency has two years in which to 

obligate appropriated funds and another five years in 

which to complete the payout process. 

Analysis of Financial Results 

Total agency assets of $229 million were reflected on 

the Balance Sheet at the end of fiscal year 2010, an 

overall increase of more than 29 percent when compared to the FY 2009 total assets of $176.8 million. 

The $50.6 million increase in the Fund Balance with 

Treasury was mainly due to a $48.8 million increase 

in the appropriated funds not yet expensed and a $2.7 

million increase in funding for the Volunteer readjustment Allowance. In addition, Property, Plant, 

and equipment (PP&e) and other assets increased 

by $1.8 million due to an increase in vehicles, IT 

hardware purchases, and increases in prepayments 

for employee travel and relocation. 

Assets. As of September 30, 2010, the Peace Corps’ 

total assets were $229 million on the Balance Sheet. 

eighty-three percent of the assets were in the Fund 

Balance with Treasury and 14 percent of the assets 

were in PP&e. See the chart below reflecting all 

agency assets: 

Peace Corps Volunteers may be able to defer 

Stafford, Perkins, and consolidation loans 

and may qualify to cancel 15 percent of each 

Perkins Loan per year of service, up to 70 

percent total. 

FY 2010 Assets by Type 

($ in Thousands) 

Property, Plant 

and Equipment 

$31,869 

14% 

Fund Balance 

with Treasury 

$189,675 

83% 

$7,548 

Other Assets 

$3,641 

1% 

Prepaid Volunteer 

Living Allowances 

$3,907 

2% 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 19 
 

Management’s Discussion and Analysis 

Liabilities. Total liabilities of $250 million were 

reflected on the Balance Sheet at the end of FY 2010. 

Liabilities increased $32 million from the FY 2009 

level of $218 million primarily due to a $16.3 million 

increase in the federal employee benefits actuarial 

projection as calculated by the Department of Labor. 

other areas of significant change include an increase 

of $5.5 million in accounts payable, an increase of 

$3.7 million to the unfunded employment-related 

liability for the personal services contractors, and 

an increase of $2.3 million in the unfunded Federal 

employees Compensation Act (FeCA) liability. 

Net Cost. The net cost of operations increased 19.4 

percent over FY 2009 to $386 million. The gross 

costs of the agency increased by $63.1 million during 

FY 2010 due to increases in the number of Volunteers 

and their support. 

Limitations of the Principal Financial 

Statements 

The principal financial statements have been prepared to report the financial position and results 

of operations of the Peace Corps, pursuant to the 

requirements of 31 U.S.C. 3515 (b). While the statements have been prepared from the entity’s books 

and records in accordance with generally accepted 

accounting principles for federal entities and the formats prescribed by the office of Management and 

Budget (oMB), the statements are in addition to the 

financial reports used to monitor and control budgetary resources, which are prepared from the same 

books and records. 

The statements should be read with the realization 

that they are for a component of the U.S. government, 

a sovereign entity. 

FY 2010 Liabilities by Type 

($ in Thousands) 

Employee Benefits 

$138,157 

55% 

Non­Entity Funds 

$41,880 

17% 

Unfunded FECA 

Other Liabilities 

$6,314 Unfunded  3% Annual Leave 

$8,675 Accounts 

3% 

Liability $29,871 

12% 

Other 

Employment 

Related 

$9,319 

4% 

Payable

 $15,780 

6% 

20 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

 

Management’s Discussion and Analysis 

0

Analysis of Systems, Controls, and Legal Compliance 

Management Assurances 

Federal Managers’ Financial Integrity Act 

The Federal Managers’ Financial Integrity Act 

(FMFIA) of 1982 requires agencies to establish 

accounting and administrative controls to include 

program, operational, and administrative areas, 

in addition to accounting and financial management. The implementation of internal accounting 

and administrative controls must provide reasonable assurance that (i) obligations and costs are in 

compliance with applicable law; (ii) funds, property, 

and other assets are safeguarded against waste, 

loss, unauthorized use, or misappropriation; and 

(iii) revenues and expenditures applicable to agency 

operations are properly recorded and accounted for 

to permit the preparation of accounts and reliable 

financial and statistical reports and to maintain 

accountability over the assets. The FMFIA establishes overall requirements for internal control and 

requires that the agency head evaluate and report 

annually on the control and financial systems that 

protect the integrity of federal programs (Section 2 

and Section 4 of FMFIA, respectively). oMB Circular A-123, Management’s Responsibility for Internal 

Control, implements the FMFIA and defines management’s responsibility for internal control in 

federal agencies. Further, oMB Circular A-127, 

Financial Management Systems, prescribes policies 

and standards to follow in managing financial management systems. 

Internal Control within the Peace Corps 

The Peace Corps’ internal control program is governed by the senior assessment team led by the 

chief financial officer. This team monitors corrective action progress toward completion of the past 

fiscal year’s significant deficiencies and audit recommendations through a series of meetings and 

correspondence. At mid-year, department and office 

heads across the agency conducted risk assessments 

for their business areas and identified no material 

weaknesses. Additionally, recent annual assurance 

statements attesting to the adequacy of internal controls prepared by the department and office heads 

did not reveal any material weaknesses. Further 

strengthening the internal control program were 

reviews, audits, investigations, and evaluations conducted by the office of the Inspector General during 

FY 2010. 

Summary 

This is the fourth consecutive year in which the Peace 

Corps has achieved an unqualified (clean) financial 

audit opinion during its annual financial statement 

audit. The annual assurance statement on compliance that follows confirms that the agency’s internal 

controls and financial management systems meet 

FMFIA objectives and that the agency is operating efficiently and effectively. The annual assurance 

statement is consistent with the FY 2010 audit report. 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 21 
 

Management’s Discussion and Analysis 

FY 2010 Annual FMFIA Assurance Statement 

The Peace Corps assessed the effectiveness of internal controls to support effective and efficient operations, reliable financial reporting, and compliance with applicable laws and regulations in accordance 

with the Federal Managers’ Financial Integrity Act (FMFIA) of 1982 Section 2 and oMB Circular A-123. 

Based on this assessment, the Peace Corps can provide reasonable assurance for FY 2010 that its internal 

control over the effectiveness and efficiency of operations, financial reporting, and compliance with applicable laws and regulations was operating effectively and no material weaknesses were found in the design 

or operation of the internal controls. 

The Peace Corps conducted its assessment of whether the financial management systems conform to 

governmentwide financial systems requirements in accordance with FMFIA Section 4. Based on this 

assessment, the Peace Corps can provide reasonable assurance that its financial management systems are 

in compliance with the applicable provisions of FMFIA Section 4 and oMB Circular A-127 for FY 2010. 

Aaron S. Williams, Director 

November 15, 2010 

Joseph L. Hepp, Jr.
 

Chief Financial officer
 

November 15, 2010 

22 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
PerForMANCe SeCTIoN 

Education Volunteer teaches 

Geography at a school in rural 

Mongolia. 
 

Performance Section 

0

Agency Performance 

Introduction 

In FY 2010, Peace Corps embarked on a comprehensive agency-wide assessment as a means of strengthening, 

reforming, and growing the agency. The Director endorsed the recommended strategies, and with that catalyst, 

the agency redoubled its efforts to advance the three core goals of the Peace Corps. Particular emphasis was placed 

on strengthening collaboration, communication, and partnerships with the countries in which Volunteers serve. 

The agency also worked to create more effective management mechanisms and support for Volunteers. The agency 

met 24 of the 36 measurable performance indicators for FY 2010 due to the dedicated work of the Volunteers and 

staff who support them. of the 12 indicators where performance was not met, three indicators achieved substantial results within 5 percentage points of the target. 

Status of FY 2010 Performance Measures 

FY 2010 is the second year the agency is reporting on the new set of performance goals and indicator targets outlined in the Peace Corps’ FY 2009–2014 Strategic Plan. overall, the agency achieved success in two of the five 

strategic goals, and met or exceeded targets in 67 percent of the 36 performance indicators. The analysis of the 

indicators by performance goal is provided in this Agency Performance Section. 

Today, nearly 22 percent of all Peace Corps Volunteers serve in 38 percent of the countries 

considered to be predominately Muslim (population at least 40 percent Muslim). Over 1,900 

American Volunteers and staff work in these 18 host countries. This remains a top priority for 

the agency. 

24 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

Performance Section 

FY 2010 Strategic Performance Plan Summary 

Performance 

Goal Description Targets 

Met 

Strategic Goal 1 – Enhance the capacity of host country individuals, organizations, 

and communities to meet their skill needs 8 of 10 

1.1.1 Ensure the effectiveness of in-country programs 2 of 3 

1.2.1 Ensure the effectiveness of in-country training 3 of 3 

1.3.1 Increase the effectiveness of skills transfer to host country individuals, organizations, and communities 3 of 4 

Strategic Goal 2 – Promote a better understanding of Americans on the part of host 

country individuals, organizations, and communities served by Volunteers 1 of 3 

2.1.1 The work and life experiences of Volunteers in-country promote host country national learning about Americans 1 of 3 

Strategic Goal 3 – Foster outreach to Americans through agency programs that 

assist Volunteers and returned Peace Corps Volunteers to help promote a better 

understanding of other peoples on the part of Americans 

5 of 5 

3.1.1 Volunteers share their in-country experiences with family, friends, and the American 

public 3 of 3 

3.1.2 Increase returned Peace Corps Volunteers’ cultural outreach to the American public 

through Peace Corps programs 2 of 2 

Strategic Goal 4 – Provide Volunteers who represent the diversity of Americans to 

meet the evolving technical needs of host countries 3 of 6 

4.1.1 Recruit Volunteers who balance the needed manpower and technical needs at posts 

with the available applicant pool and its skills 2 of 2 

4.1.2 Manage Volunteer recruitment functions in an effective and efficient manner 0 of 2 

4.2.1 Recruitment and Volunteer placement efforts reflect the diversity of Americans 1 of 2 

Strategic Goal 5 – Implement the Peace Corps mission in an effective and efficient 

manner through the provision of high quality Volunteer support with optimal 

health care, safety and security support, and effective management of resources 

7 of 12 

5.1.1 Enhance the safety and security of Volunteers 2 of 4 

5.1.2 Provide quality medical and mental health services to trainees and Volunteers 3 of 3 

5.2.1 Provide effective and responsive financial management that accurately reflects 

domestic and overseas operations 0 of 2 

5.2.2 Ensure the effective management of Peace Corps resources 1 of 2 

5.2.3 Ensure optimal performance of critical Peace Corps processes 1 of 1 

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Performance Section 

0

Annual Performance Results 

Strategic Goal 1: Enhance the capacity of host country individuals, organizations, and communities to 

meet their skill needs 

In order to enhance the capacity of host country individuals, organizations, and communities, the Peace Corps 

works with each host country to identify its needs. To be successful, the agency must have open communication 

and a positive working relationship at all levels with host country governments, partner organizations, communities, and counterparts. 

Volunteer projects and activities are designed in collaboration with national sponsoring agencies to meet the 

development needs of the country. Additionally, the agency has integrated cross-cutting initiatives into all sectors, as appropriate, to ensure agility in recognizing shifts in skills needed on the ground. During the time horizon 

of the current Strategic Plan, the agency has identified several issues for concentrated programmatic attention, 

including education, health, and food security. once country needs are identified, the agency must provide appropriate Volunteers who are trained to effectively build individual and organizational capacity through the transfer 

of skills. Volunteers must have adequate language, cultural, technical, and capacity-building training to ensure 

the successful accomplishment of their work. 

In this second year of the Strategic Plan, the agency has increased its focus on training as a result of the Comprehensive Assessment of the Peace Corps. The assessment calls on the agency to identify key development interventions 

worldwide where the Peace Corps is, or will be, working with large numbers of Volunteers, and to enhance and 

strengthen the technical preparation of Volunteers in these areas. 

Monitoring and evaluating the effectiveness of the Volunteers’ work is essential to continuous performance 

improvement. Throughout the year, Peace Corps posts collect qualitative and quantitative data from all Volunteers about their activities via the Volunteer reporting Tool, an electronic data management system. each 

Volunteer reports on the outcomes of his/her activities against the objectives of sector-specific projects. Measuring host country capacity building is also a major activity within each project and Volunteers report on these 

results through this same reporting tool. 

Volunteers’ perceptions on the effectiveness and impact of their work in building local capacity is also measured 

through the Annual Volunteer Survey, administered once a year to all currently serving Volunteers. 

The Peace Corps’ host country impact studies are used to measure the transfer of skills to host country nationals. 

The evaluations identify the types of skills transferred and the long-term sustainability of new capacities gained 

from working with Volunteers. A recommended strategy from the Comprehensive Assessment is to strengthen 

and enhance the agency’s monitoring and reporting system by increasing the number of host country impact studies conducted each year. 

Outcome Goals: 

1.1 	 Country programs fulfill host country skill needs. 

1.2	 Volunteers have the competencies necessary to implement a country program. 

1.3 	 Host country individuals, organizations, and communities demonstrate an enhanced capacity to meet 

their own needs. 

26 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

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Performance Section 

Performance Goal 1.1.1: Ensure the effectiveness of in-country programs 

Agency Level Performance Indicators: 

Performance Goal 1.1.1: Ensure the effectiveness of 

in country programs 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Percentage of project plans meeting the expressed needs of 

the host country N/A 97% 90% 98% 

b. Percentage of posts providing annual progress reports to their 

host country agency sponsors and partners 62% 53% 80% 70% 

c. Enhance the average length of service of Volunteers to equal 

or exceed 21 months 

20.9 

months 

22.1 

months 

21 

months 

22.6 

months 

Results and Analysis: Two of the three targets were met for this performance goal. 

Participatory development is the hallmark of the agency’s approach to working with partner countries. The Peace 

Corps conducts its work in partnership with host country governments, local organizations, and communities in 

order to achieve participatory, community-based development. 

Collaboration between the Peace Corps and host country partners allows for the creation of project plans that 

meet the needs of host communities. The agency assesses project plans for this indicator because of the direct 

impact they have on Volunteers and host communities. Volunteer training is tailored specifically to each project. 

Thus, each project plan contributes directly to the skills Volunteers will take with them to their host communities. At the beginning of the fiscal year, the posts reported a total of 211 projects worldwide. of those projects, 98 

percent report that the plans reflect the development needs of the country, thus exceeding the target by 8 percent. 

Accountability to host country sponsors regarding program progress is a second critical aspect of the agency’s 

commitment to participatory development. The Peace Corps achieves this by developing annual reports that are 

shared with host country stakeholders. Seventy percent of the posts (45) provided annual reports to stakeholders 

in FY 2010. While the agency did not meet the target of 80 percent, performance was significantly improved from 

FY 2009, when 53 percent of posts provided annual progress reports to host country partners. 

The improvement is attributed to the agency’s commitment to increase transparency. During FY 2010, the importance of communicating with host country stakeholders was emphasized at each of three conferences for country 

directors. Several directors shared their country reports and offered suggestions for a useful yet cost-effective 

document. The reports take several forms. For example, el Salvador produced a written report encompassing all 

projects, prepared a brochure for each project, captured Volunteers’ work on a DVD/CD, and made a formal presentation to stakeholders. 

reports are prepared in the host country language and in english and generally combine information from the 

Volunteers’ achievement reports, site visits by project managers, and program evaluations. 

Three of the 15 posts that did not prepare annual reports were new posts and, thus, had not yet implemented programs on which to report. one post had just ratified its project with the host country government and, therefore, 

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Performance Section 

did not have a report. eight posts noted they lacked sufficient staff resources and time to complete the reports and 

submit them to partners. 

The effectiveness of Peace Corps’ in-country programs is also directly related to the length of service of a Volunteer. Longer-serving Volunteers are more fully integrated into their communities, have acquired greater language 

proficiency, and report higher rates of satisfaction with their work as they become more comfortable with, and 

rewarded by, their Peace Corps service. The average length of service in FY 2010 was 22.6 months, a slight increase 

over FY 2009. Thus, the target of 21 months was achieved. 

Moving forward, the Peace Corps intends to increase its strategic partnerships with private sector companies, 

schools, civil society organizations, and returned Peace Corps Volunteers in order to continue meeting the needs 

of host country beneficiaries. 

Performance Goal 1.2.1: Ensure the effectiveness of in-country training 

Agency Level Performance Indicators: 

Performance Goal 1.2.1: Ensure the effectiveness 

of in country training 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Percentage of Volunteers meeting local language requirements for service, per post testing standards N/A 93% 85% 87% 

b. Percentage of Volunteers reporting training as adequate or 

better in preparing them technically for service 78% 80% 72% 80% 

c. Percentage of Volunteers reporting training as adequate or 

better in preparing them to work with counterparts 74% 79% 62% 79% 

Results and Analysis: All targets were met for this performance goal. 

The Peace Corps is highly regarded for its language training. Proficiency in the language of the host community is 

critical to Volunteers’ cultural integration and ability to work within their communities. This core competency is 

assessed by the agency’s certified language proficiency interviewers who test Volunteers’ language skills at the end 

of their pre-service training. eighty-seven percent of Volunteers tested met or exceeded their host country’s language proficiency benchmarks, which exceeded the FY 2010 target of 85 percent. The FY 2010 indicator reflects a 

decrease of 6 percent from FY 2009; however, the current information represents more complete data reported by 

64 posts, in contrast to the FY 2009 data based on only 10 posts. 

The agency currently teaches approximately 140 languages in 77 countries. Posts typically teach their Volunteers 

one local language during their pre-service training; however, many Volunteers learn two or more languages. In 

countries with significant language diversity, some posts provide instruction on as many as 15 languages in order 

to prepare Volunteers to serve in their communities. Many of these languages have unique grammar and alphabets that are very different from english, and some have no written form. 

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Performance Section 

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•	

•	

In support of the Energy and Climate Partnership of the Americas, the Department of State will 

provide $1 million to fund Peace Corps Volunteer efforts that increase rural access to energy, 

mitigate the effects of climate change, and support the use of renewable energy and energy 

efficient technologies in Central and South American communities. 

Despite the challenges of multiple languages and shortages of trained instructors and instructional materials, the 

Peace Corps’ language training is remarkably effective. In eight to 12 weeks, Volunteers learn enough of their local 

language(s) to integrate into communities and carry out their work assignments. 

Providing Volunteers who are adequately prepared for their work assignments is another major responsibility of 

the posts. The posts provide technical training during pre-service training in addition to focused technical training workshops, field exercises, and on-site visits from staff and technical experts during the Volunteers’ service. 

In the 2010 Annual Volunteer Survey, 80 percent of participating Volunteers listed their “training as adequate or 

better in preparing them technically,” exceeding the FY 2010 target of 72 percent. 

Posts are implementing an innovative phased-in approach to technical training on an increased basis, with the 

sequence and length of technical training being based on trainee awareness and readiness. During the threephase training, for example, Volunteers engage in practical activities after each training phase, providing them 

with an opportunity to apply their technical training before the next phase of training begins. 

This phased-in approach is also helpful in preparing Volunteers to work with their host country counterparts. 

During pre-service training, a combination of “real-life” training activities and community involvement simulates the actual environment in which the Volunteers will be working. Seventy-nine percent of Volunteers 

reported the training to prepare them to work with their host country counterparts was adequate or better, significantly exceeding the FY 2010 target of 62 percent. 

This year, the agency increased support for the joint training of Volunteers and their counterparts through: 

Increased funding to include host country nationals in Peace Corps’ training events 

Greater emphasis on developing project advisory councils during which Volunteers and counterparts discuss 

the design, implementation, and results of the projects 

An increased number of project design and management workshops to train counterparts in project 

implementation and leadership development 

A factor that also contributed to successful Volunteer training was the use of an integrated training design and 

evaluation model for language skill acquisition, technical training, and cross-cultural training. 

Finally, the new partnership agreements with leading international organizations are providing valuable technical support for post programming and training, enhancing the developmental impact of Volunteers. 

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Performance Section 

Performance Goal 1.3.1: Increase the effectiveness of skills transfer to host country individuals, 

organizations, and communities 

Agency Level Performance Indicators: 

Performance Goal 1.3.1: Increase the effectiveness of 

skills transfer to host country individuals, organizations, 

and communities 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Percentage of Volunteers reporting that their work 

transferred skills to host country individuals and 

organizations adequately or better 

84% 88% 72% 85% 

b. Percentage of Volunteers reporting their HIV/AIDS education 

and outreach work is effective or better 44% 59% 80% 56% 

c. Percentage of projects that document increases in host 

country national capacity 86% 91% 75% 85% 

d. Percentage of partner organizations reporting their assigned 

Volunteers fulfilled their requested need for technical 

assistance 

82% 52% 60% 72% 

Results and Analysis: The Peace Corps met three of the four targets set for this outcome. 

A major contribution of the Volunteers is their ability to deliver technical interventions directly to beneficiaries 

living in rural or underserved areas that lack local professionals. Their assignments focus on building capacity and 

transferring skills to host country individuals and organizations in areas such as teaching and teacher training, 

community development, and health. Volunteers’ development perspective promotes sustainable projects and 

strategies by focusing on skills transfer. 

eighty-five percent of the Volunteers reported they had transferred skills to host country individuals, a significant 

increase over the target of 72 percent. This finding is corroborated by data gathered through the agency’s host 

country impact studies. 

Host country nationals reported in the impact studies that 94 percent of respondents said they had gained skills 

through their work with the Peace Corps and 85 percent of respondents reported the training they received 

enhanced their technical skills. Further, 90 percent of impact study respondents indicated the projects built community capacity to address local needs. 

The solid performance can be attributed to an agency commitment to achieving results and emphasizing to 

Volunteers and overseas staff the importance of achievement and the measurement of activity outcomes. This 

commitment is reinforced by the agency recommendation to establish in-depth technical training programs to 

ensure that Volunteers, particularly generalist Volunteers, are well-prepared for service. 

The agency was not able to meet its target related to the percentage of Volunteers who report that their HIV/AIDS 

work is effective. In FY 2010, most Volunteers (56 percent) reported conducting HIV/AIDS activities and slightly 

more than half (56 percent) reported their work was effective. Those Volunteers devoting significant time to HIV/ 

AIDS activities reported higher levels of effectiveness, however. For example, 60 percent of Volunteers whose 

30 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

Performance Section 

•	

•	

•	

•	

HIV/AIDS activities were part of their primary activities report that their work is effective or better, as did 63 percent of Volunteers who conducted HIV/AIDS activities as part of their secondary activities. In contrast, only 45 

percent of Volunteers who conducted HIV/AIDS activities occasionally reported that those HIV/AIDS activities 

were effective or better. 

Prevention outreach and education is a difficult assignment due to the taboo of discussing sex and sexuality in 

many of the communities in which Volunteers work. The stigma that people living with HIV/AIDS encounter also 

makes effective engagement with these vulnerable populations very difficult. 

Many Volunteers also report challenges in measuring the effectiveness of their HIV/AIDS interventions; they 

know they taught the lesson, but are unsure if that knowledge resulted in behavior change. While Volunteers may 

not be able to determine the impact of their HIV/AIDS activities, data gathered through the impact studies suggests that host country nationals are indeed seeing a difference from these activities. In two host country impact 

studies (Cameroon and Tanzania) additional questions were asked concerning the impact of HIV/AIDS work. 

Forty-one of 42 people interviewed reported they were satisfied with changes in their communities as a result of 

the agency’s HIV/AIDS activities while 27 reported being very satisfied. When asked about personal changes, 40 

of 42 people interviewed were satisfied, and 33 of 42 respondents were very satisfied with the changes. 

“The prevalence of HIV/AIDS here is astronomical; however, our presence alone is enough to create some behavior change,” one Volunteer wrote. 

To address these issues, the agency will conduct the following activities: 

Develop a pre-departure home preparation package. Volunteers will learn about the epidemics they may 

encounter 

Develop training modules for Volunteers to use during their service. Such modules will cover various HIV 

topics and foster integration of HIV within sector and topic areas like english language training, nutrition, 

and perma-gardening 

Create a package of virtual technical assistance to help posts design, implement, and evaluate their HIV 

programs 

Launch an expanded small grants program to support and encourage posts to consider a wide array of 

activities to address the HIV epidemic 

All project plans have indicators for measuring capacity building. In FY 2010, 85 percent of the projects documented host country capacity built by the project activities, exceeding the target by 10 percentage points. 

The target was exceeded because of the agency’s continued emphasis on focusing on results. Posts received assistance to develop specific measurement tools both at country director conferences and through regional workshops 

on monitoring and evaluation. The methods used to measure capacity building differ across the sectors in which 

the Peace Corps operates, and most posts use more than one method at different times to gauge progress on this 

indicator. The majority (91 percent) rely on Volunteers’ reports. Sixty-one percent used “documented observations” to demonstrate changes; 28 percent used pre- and post-test measures, and 23 percent conducted project 

evaluations. Another 52 percent reported they used other methods to document increases in host country national 

capacity, such as interviews with host country counterparts, presentations by beneficiaries at Volunteer training 

events, and information gleaned through annual regional meetings. 

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Performance Section 

•	

•	

•	

•	

•	

•	

•	

•	

•	

Posts reported several approaches they used to document capacity building. These approaches are being shared 

across posts and include: 

Adapting data collection methods to the populations and outcomes measured, such as using surveys with 

more educated populations 

Using tests to measure changes in knowledge and utilizing observation to measure changes in skills 

Investing time to ensure the change indicator(s) are reliable, valid, and practical 

Gathering data from multiple sources to develop a broad picture of project outcomes (e.g., combining 

information from Volunteer and counterpart reports) 

Using trainings and regional meetings that include counterparts and Volunteers as sources of information 

regarding capacity building 

Working to standardize Volunteer reporting to allow for easier data aggregation 

The number of partner organizations that reported their assigned Volunteers fulfilled their requested needs for 

technical assistance reached 72 percent, exceeding the target by 12 percentage points. This result is also due to 

the agency’s emphasis on achieving and measuring the results, especially from the perspective of the beneficiaries. Many posts gather information about this topic directly from partner agencies during site visits (84 percent), 

through written or verbal reports (63 percent), or during program advisory committee meetings (36 percent). 

Thirty-nine percent of posts reported gathering such information in other ways, such as: 

Formal impact assessments 

Satisfaction surveys 

Partners’ requests for additional Volunteers 

Strategic Goal 2: Promote a better understanding of Americans on the part of host country individuals, 

organizations, and communities served by Volunteers 

Key to effectively sharing information about America and Americans is to ensure that Volunteers learn the local 

language, customs, and culture, and can live and work alongside host country nationals in a manner that builds 

trust and a willingness to work together. Thus, the Peace Corps structures its programs to maximize a Volunteer’s 

ability to integrate into the local community, thereby earning trust and the ability to share a better understanding 

of Americans. 

Cross-cultural training for both Volunteers and their counterparts, the specific host country nationals with 

whom Volunteers work on a regular basis, is another key factor in fostering a better understanding of Americans. 

effective training can break down cultural barriers that inherently exist. The Peace Corps strives to ensure that 

pre-service and in-service training sessions prepare Volunteers to integrate into their communities and work with 

their counterparts to build cross-cultural understanding, in addition to carrying out development projects. 

Volunteers help promote a better understanding of Americans by experiencing the same living conditions as those 

they serve. Volunteers also exemplify the diversity, characteristics, and values of the American people. As one of 

the expectations set for Volunteers, they realize they represent Americans in their community and are mindful of 

that responsibility. 

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Performance Section 

Outcome Goal: 

2.1 	 Host country individuals and communities learn about Americans through shared experiences with 

Peace Corps Volunteers. 

Performance Goal 2.1.1: The work and life experiences of Volunteers in-country promote host country 

national learning about Americans 

Agency Level Performance Indicators: 

Performance Goal 2.1.1: The work and life experiences 

of Volunteers in country promote host country national 

learning about Americans 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Percentage of Volunteers reporting that training prepared 

them to manage cultural differences during service adequately or better 91% 92% 92% 91% 

b. Percentage of posts conducting supervisory/counterpart 

training on working effectively with Volunteers 98% 100% 95% 98% 

c. Percentage of host country nationals who have interacted 

with Volunteers who believe that Americans are committed to 

assisting other peoples 

N/A 44% N/A N/A 

d. Percentage of Volunteers reporting that their work helps 

promote a better understanding of Americans on the part of 

the peoples served 

93% 74% 80% 68% 

Results and Analysis: In FY 2010, the agency met one of the four targets for this performance goal, did 

not meet one, and came within one percentage point of a third target. The fourth indicator, measuring the 

“percent of host country nationals who believe Americans are committed to assisting other peoples,” was 

not reported this year. 

Volunteers reported high satisfaction with cross-cultural training provided by the agency. Nonetheless, the agency 

fell short of the FY 2010 target, 92 percent, by 1 percent. The training increases Volunteers’ understanding of the 

culture in which they will live and work, teaches a set of skills, and establishes a framework so they can make sense 

of what they are experiencing in-country. The agency will continue to provide cross-cultural training to Volunteers in their pre-service training and will reinforce the importance of being aware of cross-cultural differences. 

Peace Corps places equal importance on training Volunteers’ counterparts to help them understand American 

culture and to help the Volunteers integrate into their communities. Nearly all posts (98 percent) conducted training for counterparts and supervisors. This training ranged from counterpart orientations when Volunteers moved 

to their communities, to technical training conducted jointly with the Volunteers. The agency met the FY 2010 

target for this indicator. 

Two indicators were crafted to measure the extent to which Volunteers influence host country nationals’ perspective of Americans. The first was designed to measure host country nationals’ opinions of Americans. The second 

measures the Volunteers’ opinion of their impact on host country nationals’ understanding of Americans. 

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Performance Section 

The agency is not reporting on the indicator of host country nationals’ perspective of Americans in FY 2010, as 

the agency has determined that the indicator, as written (“the percentage of host country nationals committed to 

assisting other peoples”) is not a valid measure of host country nationals’ perceptions of Americans after interacting with Volunteers. 

The FY 2008 baseline data collected in the pilot evaluations were based on host country nationals’ responses to a 

general question: “Can you briefly describe what you think of Americans as a result of working with Peace Corps 

Volunteers?” eighty-one percent of host country nationals spontaneously reported that they thought Volunteers 

exhibited a caring attitude toward the community. In FY 2009, the same question elicited a response of 44 percent. 

The review of the pilot evaluations and subsequent studies conducted in FY 2009 concluded that the indicator is 

not valid and the question was removed from the FY 2010 host country impact studies. The agency will revise this 

indicator during the mid-cycle strategy review in FY 2011. 

Finally, the percentage of Volunteers reporting their work helped promote a better understanding of Americans 

(68 percent) fell short of the target. These results come from data gathered from Volunteers through the Annual 

Volunteer Survey. 

These findings are corroborated by data collected from host country nationals through the Peace Corps’ host 

country impact studies conducted during FY 2010 in: Cameroon, Guatemala, Jamaica, Mexico, Morocco, Tanzania, and Ukraine. 

Fifty-nine percent of the host country nationals reported developing a more thorough understanding of Americans after interacting with Peace Corps Volunteers. Host country nationals’ interactions with Volunteers helped 

them develop more realistic and well-rounded impressions of Americans and their opinions became more positive 

(77 percent of respondents said that their opinions of Americans were more positive after interacting with Volunteers). 

Strategic Goal 3: Foster outreach to Americans through agency programs that assist Volunteers and 

returned Peace Corps Volunteers to help promote a better understanding of other peoples on the part of 

Americans 

Volunteers and returned Peace Corps Volunteers (rPCVs) support the Peace Corps’ Third Goal “to promote a 

better understanding of other peoples on the part of Americans,” through formal and informal interactions during and after their Peace Corps service. The agency supports such interactions by establishing programs that 

encourage outreach to the American public through a variety of means, such as personal interaction, electronic 

communication, and cross-cultural education curricula. These interactions take place both one-on-one and in 

large group settings in classrooms, schools, civic clubs, and with other audiences. 

The agency’s education partners at the K–12 and university levels emphasize global awareness and 21st century 

skills, creating a positive environment to expand Peace Corps’ programs. These programs target different segments of the population, ranging from age-based curricula to a Correspondence Match program that connects 

a Volunteer with an American classroom, to a master’s level program in which Volunteer service helps one make 

progress toward his or her academic degree. Additionally, the Peace Corps Partnership Program, in which students, clubs, individuals, and organizations contribute funds to assist a Volunteer and his or her host community 

34 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

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Performance Section 

in completing a community-driven project, creates a strong connection between the American public and communities overseas. 

An analysis of the Third Goal was a part of the Comprehensive Agency Assessment in an effort to determine ways 

to strengthen Third Goal activities and reporting mechanisms. The agency is headed toward the implementation 

of a substantially revitalized Third Goal effort for trainees, Volunteers, and the returned Volunteer community. 

Outcome Goal: 

3.1 Americans have increased awareness and knowledge of other cultures and global issues. 

Performance Goal 3.1.1: Volunteers share their in-country experiences with family, friends, and the 

American public 

Agency Level Performance Indicators: 

Performance Goal 3.1.1: Volunteers share their 

in country experiences with family, friends, and the 

American public 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Percentage of Volunteers participating in the Coverdell World 

Wise School Program 60% 57% 62% 63% 

b. Number of individuals and organizations supporting the 

Peace Corps Partnership Program 8,915 10,595 8,500 9,804 

c. Number of youth-serving programs hosting Volunteer 

activities 4,500 4,700 4,700 5,265 

d. Monitor the percentage of Volunteers who report sharing 

their experiences with family, friends, and the American public 97% 98% N/A 99% 

Results and Analysis: All three of the targets were met for this performance goal. 

Sixty-three percent of Volunteers participated in Peace Corps’ Coverdell World Wise Schools Correspondence 

Match program, meeting the FY 2010 target. 

To promote this program and boost the number of participating Volunteers, the Peace Corps undertook a number of initiatives at home and abroad in FY 2010. Peace Corps also worked with schools and youth group leaders 

to increase teachers’ familiarity and interest in the program by increasing the number of education conferences 

attended to 10 in FY 2010 from four in FY 2009. This effort resulted in 5,265 schools and youth programs hosting 

Volunteer activities. 

For the first time, Peace Corps developed a video promoting the value of the program to Volunteers and staff. The 

video was posted on the Peace Corps’ website, shared through various social networking media outlets, and promoted at education conferences across the country. This year, all new Peace Corps staff overseas were informed 

about the program during overseas staff trainings and the information was included in Volunteer invitation packets; more information was provided in staging directors’ manuals; and headquarters personnel worked more 

closely with in-country Correspondence Match contacts. 

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Performance Section 

Volunteers shared their comments about the impact the program has on broadening students’ world views. one 

Volunteer wrote, “I am in communication with two teachers from the program. It is a wonderful program that has 

excited my students, as well as the students in America, to learn and open their minds to another culture.” 

Another Volunteer said, “It’s been one of the highlights of my service so far. Classes have exchanged ideas about 

pop culture, schools, food, language, [and] foreign language learning.” 

Not only is there cultural exchange, but there is knowledge exchange as well. A Volunteer wrote, “I am connected 

with a Spanish teacher in New Hampshire. This past school year, her students made preventive health brochures 

that I will be laying out in my health center, as well as story boards on preventive health themes.” 

The Peace Corps Partnership Program also contributes to the agency’s Third Goal—increasing Americans’ understanding of other cultures—by connecting donors in the United States with Volunteers and their host communities 

overseas. According to one Volunteer, “PCPP [Peace Corps Partnership Program] is a wonderful program that 

makes it easy for friends, family, businesses, and organizations to get involved in Peace Corps Volunteer projects.” 

U.S. donors provided 10,623 donations for 670 projects in the field. During a time when engaging donors is difficult, 

the Peace Corps Partnership Program raised over $1.95 million from 9,804 donors, exceeding the FY 2010 target. 

Peace Corps Partnership Program projects are implemented around the world and take various shapes and sizes 

within each Volunteer’s community. For example, in Senegal, a Volunteer and the community built a rural health 

hut that provides immediate urgent health care and consultation to over 3,000 people from 10 villages. on an 

island in the eastern Caribbean, the Partnership Program funded a solar mango drying project. A Peace Corps 

Volunteer worked with secondary school students who harnessed the sun’s energy through eight solar dryers they 

had built. The students learned to dry fruits and vegetables and prepare them to sell. 

In FY 2010, 99 percent of all Volunteers participating in the Annual Volunteer Survey reported sharing their experiences with family, friends, and the American public. Almost 90 percent of Volunteers shared their experience 

through electronic updates, and more than 50 percent of Volunteers educated Americans back home about life in 

their host countries through personal websites or blogs. Nearly three of every five Volunteers shared their experiences and understanding of their host countries by hosting American visitors in their host community or host 

country. The agency monitors this indicator but does not set a target. 

Performance Goal 3.1.2: Increase returned Peace Corps Volunteers’ cultural outreach to the American 

public through Peace Corps programs 

Agency Level Performance Indicators: 

Performance Goal 3.1.2: Increase returned Peace Corps 

Volunteers’ cultural outreach to the American public 

through Peace Corps programs 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Number of RPCVs participating in agency-initiated activities 7,209 9,102 8,300 9,627 

b. Number of schools impacted by the activities of RPCVs N/A 502 600 829 

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Performance Section 

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Results and Analysis: Both targets were met for this performance goal. 

returned Volunteers are the most effective promoters of the Third Goal. By bringing their experiences back home, 

they help broaden the world for their fellow Americans. returned Volunteers actively engage the American public 

through partnerships with private sector companies, schools, civil society organizations, returned Peace Corps 

Volunteer groups, and government agencies. This increases understanding of other cultures and generates commitment to volunteerism as a way to “continue service.” 

returned Peace Corps Volunteers participate in two broad categories of agency-initiated activities: those that 

involve returned Volunteers in recruitment activities and those that help rPCVs share the Peace Corps experience with others. 

During FY 2010, the agency exceeded its target. There were 9,627 returned Volunteers participating in agencysponsored activities and 5,529 returned Volunteers shared their experience during recruitment events. Another 

4,098 returned Volunteers participated in the following activities: 

Peace Corps Week, a national event that engages returned Volunteers to speak in schools and at community 

events nationwide 

Speakers Match program events (requests from organizations to host a returned Volunteer as a guest 

speaker) 

Preparation of informational materials and resources for use by American classroom teachers and their 

students through the Coverdell World Wise Schools 

Fellows/USA program, which allows returned Volunteers to pursue graduate degrees while working in 

schools and underserved communities under Peace Corps’ sponsorship 

Informational meetings where returned Volunteers served as cultural resources to support Peace Corps 

recruiters 

The number of schools benefitting from returned Volunteers’ presentations increased from 502 to 829, exceeding 

the target of 600. 

During FY 2010, the agency increased the number of Fellows/USA graduate schools to 55 from 52 in FY 2009 

and organized new regional rPCV Third Goal outreach events, both of which increased returned Volunteer 

participation. 

In addition to the expansion of the Fellows/USA graduate program, the agency also expanded the Coverdell World 

Wise Schools program to include 685 schools, up from 450 in FY 2009. This program is a strong partner in U.S. 

efforts to teach American schoolchildren how to be global citizens with the help of returned Volunteers participating through its Speakers Match program. 

During FY 2010, the agency focused on the Peace Corps’ cooperative agreement with the National Peace Corps 

Association to promote the agency’s Speakers Match program through their website and publications and 

expanded it to allow college/university professors to request returned Volunteer presentations. 

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Although the Peace Corps met its targets under this goal, the agency is committed to excelling in this area and 

is taking the following steps based on the Agency Comprehensive Assessment, to further expand its Third Goal 

outcomes: 

Increase the allocation of resources for Third Goal programs 

Continue to expand the Fellows/USA program 

Develop a returned Volunteer portal to collect contact information and information about returned 

Volunteers’ Third Goal activities 

establish awards for outstanding returned Volunteers 

Strategic Goal 4: Provide Volunteers who represent the diversity of Americans to meet the evolving 

technical needs of host countries 

The Peace Corps is charged with helping host countries meet their needs for trained men and women. essentially, 

the agency must recruit the “supply” to meet the “demand” for specific skill sets. Moreover, since the agency also 

has a critical cross-cultural component to its mission, it is important that Volunteers recruited reflect the rich 

diversity of America. 

In FY 2010, the agency emphasized the importance of well-defined systems to help synchronize the recruitment 

of individuals with appropriate skill sets to meet the evolving technical needs of host countries throughout the 

world. The Comprehensive Assessment has recognized the need to embrace generalist Volunteers and to provide 

them with the training and comprehensive support needed to be successful in project areas and community outreach activities. 

The Volunteer Delivery System refers to the continuous cycle of Volunteer recruitment, screening, and placement 

that allows the Peace Corps to deliver the best qualified Volunteers to meet the needs of the agency’s host countries. 

The Peace Corps has strategically aligned its Volunteer Delivery System with the agency’s mission, modernizing 

its processes to speed up the delivery process and to more effectively reach diverse groups of potential Volunteers. 

Peace Corps Volunteers are the face of America in the communities in which they serve. When Volunteers reflect 

the rich diversity of our multicultural society, they help their host communities gain a better understanding of the 

United States and the values of the American people. Furthermore, more experienced Volunteers often bring skill 

sets and life experiences that can also bring a different perspective to host communities. 

The Comprehensive Assessment calls on the Peace Corps to explore new recruitment models that will result in 

faster processing times for potential applicants while fortifying the agency’s efforts to attract a wide variety of 

applicants to represent the diversity of the United States. 

Outcome Goals: 

4.1 Volunteers provided at every post meet the evolving technical needs of host countries. 

4.2 Trainees assigned to serve overseas represent the diversity of Americans. 

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Performance Section 

Performance Goal 4.1.1: Recruit Volunteers who balance the needed manpower and technical needs at 

posts with the available applicant pool and its skills 

Agency Level Performance Indicators: 

Performance Goal 4.1.1: Recruit Volunteers who balance 

the needed manpower and technical needs at posts with 

the available applicant pool and its skills 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Maximize the number of Volunteers serving annually based on 

available funding and the provision of support to ensure their 

optimal effectiveness 

7,876 7,671 7,600 8,655 

b. Number of trainees and skills sought annually are met N/A 96% 95% 97% 

Results and Analysis: Both targets were met for this performance goal. 

At the end of FY 2010, 8,655 Volunteers were serving across the world. The agency exceeded the FY 2010 target of 

7,600 by 1,055. The agency also achieved its target of filling at least 95 percent of the requests for skills sought by 

the countries. 

To help achieve the desired increase in the number of Peace Corps Volunteers, the Director established an agencywide growth task force during the first quarter of FY 2010. The task force examined ways in which this growth 

could be supported. Throughout the FY 2010 planning and budget processes, emphasis was placed on effectively 

meeting the growth targets in order to provide a larger number of well-qualified Volunteers for host countries. 

Several headquarters offices worked closely with the overseas posts to best match the supply of qualified applicants to the needs of Peace Corps’ overseas partners. The vast majority of positions requested by overseas posts 

were directly matched by individuals with the requested skills. In addition, a continuation of work on the Volunteer Delivery System will streamline the application process and continue to improve the matching of Volunteers 

to those posts that can best utilize their skills. 

Performance Goal 4.1.2: Manage Volunteer recruitment functions in an effective and efficient manner 

Agency Level Performance Indicators: 

Performance Goal 4.1.2: Manage Volunteer recruitment 

functions in an effective and efficient manner 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Redesign the Volunteer Delivery System and implement recommendations to improve its effectiveness N/A Achieved 50% Not 

Achieved 

b. Reduce the response time to applicants 117 days 123 days 90 days 193 days 

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Performance Section 

Results and Analysis: The agency did not meet either target for this performance goal. 

A major milestone was achieved in the fourth quarter of 2010 with the award of a contract for the redesign of the 

Volunteer Delivery System. The needs of the agency that must be addressed by the system required a major change 

in the scope and breadth of the project. Therefore, the indicator no longer accurately measures the performance of 

the project. During the mid-cycle review of the agency’s Strategic Plan, this indicator will be modified. 

Implementation of this significant modernization project has begun and will ensure that the agency is utilizing 

best of breed systems and practices to manage the entire lifecycle of the Volunteer—from applicant to returned 

Volunteer. Agency staff and the vendor completed a project plan in September 2010 and execution of the plan will 

commence in october 2010. 

The system will be used to recruit, place, and retain highly qualified, service-oriented individuals. Additionally, 

this system will allow the agency to better maintain relationships with returned Volunteers in order to increase 

the domestic activities outlined under Strategic Goal 3. The system redesign will help the agency meet its targets 

for FY 2011. 

The agency did not succeed in reducing response times to achieve its FY 2010 target for Indicator 4.1.2.b. As was 

noted last year, increased analysis of data uncovered faulty methodology used to set the baseline targets. For this 

reason, this target has not been met during the last two years. This is an issue that will be addressed in the FY 2011 

mid-cycle review of the agency’s Strategic Plan. 

As a result of the implementation of the redesign, in FY 2011 the agency expects major improvements in its ability to respond quickly to Americans interested in serving in the Peace Corps and to maintain better contact with 

applicants throughout the application process. 

Performance Goal 4.2.1: Recruitment and Volunteer placement efforts reflect the diversity of Americans 

Agency Level Performance Indicators: 

Performance Goal 4.2.1: Recruitment and Volunteer 

placement efforts reflect the diversity of Americans 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Number of mid-career to age 50 and older applicants N/A 2,041 1,700 1,668 

b. Number of applicants of diverse ethnicities N/A 3,070 2,200 2,992 

Results and Analysis: The agency met one of the two targets for this performance goal. 

Peace Corps Volunteers range in age from 18 to 85 and bring unique backgrounds and experiences to their service. 

Americans of diverse backgrounds have always played a central role in building the agency’s great legacy of service. 

The agency focuses on recruiting and training committed service-oriented generalists and aggressively recruits 

from the diverse American population. 

In FY 2010, Peace Corps received 13,430 applications from Americans wishing to serve as Volunteers. The agency 

received applications from 1,668 mid-career and age 50 and older applicants, which fell below the FY 2010 target 

40 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

Performance Section 

of 1,700. Applications from ethnically diverse individuals increased to 2,992, significantly exceeding the FY 2010 

target of 2,200 applications. 

The findings of the Comprehensive Assessment have led the agency to recognize and embrace the fact that 85 percent of the agency’s Volunteers are recent college graduates with little or no professional experience. As a result, 

the agency is focused on recruiting well-educated, highly-motivated, service-oriented generalists and providing 

them with enhanced training and support to become effective agents of change. 

recruitment of mid-career and age 50 and older applicants remains an agency priority. The goal was not met 

because of reduced resources available to support specialized recruitment. 

Agency efforts to increase the number of applicants of diverse ethnicities proved successful in FY 2010 and several 

new activities were undertaken to improve diversity recruiting. An increase in the number of diverse applicants 

can be attributed to the efforts to include diversity outreach as a priority in the recruiting campaigns conducted 

by diversity liaisons and regional recruitment managers at the nine regional recruitment offices. each regional 

recruitment office has one recruiter who is the diversity liaison and the resource on diversity recruitment. Such 

liaisons encouraged all regional recruiters to hold one diversity recruitment event each month. 

recruiters visited more Historically Black Colleges and Universities, Hispanic Serving Institutions, and Tribal 

Colleges; participated at professional conferences with a diversity focus; and increased marketing outreach to 

diverse groups. Additionally, new partnerships with Minority Serving Institutions increased the agency’s visibility among diverse populations. 

Strategic Goal 5: Implement the Peace Corps mission in an effective and efficient manner through the 

provision of high quality Volunteer support with optimal health care, safety and security support, and 

effective management of resources. 

Peace Corps Volunteers serve at the grassroots level worldwide and experience the broadest range of social and 

environmental conditions, making health and safety risks an inherent part of Volunteer service. Staff and Volunteers work together to create a framework that maximizes, to the extent possible, Volunteers’ well-being, enabling 

them to focus on their work. Furthermore, the effective management of resources ensures an excellent level of 

support to Volunteers in all aspects of their service. 

Keeping Volunteers safe and healthy are the agency’s top priorities. The agency has dedicated safety and security 

personnel at each post and headquarters who are part of an extensive safety and security support network. 

The agency enhances the safety and security of Volunteers by identifying risks, developing mitigation strategies, 

educating personnel, evaluating effectiveness, and incorporating feedback and appropriate policy revisions. Two 

key factors that ensure Volunteers are well supported to carry out their work in a safe manner are to provide adequate staff training and to continually evaluate health and safety conditions at each post. 

The agency is responsible for all aspects of a Volunteer’s health care during Peace Corps service. The Peace Corps 

provides a comprehensive Volunteer health care program that focuses on the delivery of high quality care and 

service, and addresses both the physical and mental health of Volunteers. Included in this program are training, 

access to counseling, and the provision of medical services. Volunteers work in very demanding environments; 

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Performance Section 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 

thus, the agency focuses on issues of resiliency and a Volunteer’s ability to cope with stress. The latter is particularly important since some Volunteers experience emotional challenges when working with communities affected 

by HIV/AIDS. 

effectively managing Peace Corps’ domestic and overseas operations, including human and financial resources, is 

critical to carrying out the mission of the agency. When needed, the agency sends management assessment teams 

to support posts or offices in need of review and to make recommendations for improvement. Furthermore, the 

posts must work to integrate the many perspectives of their stakeholders—Volunteers, staff, and host country partners—in ensuring that their programs are on target and serving host country needs. 

The Peace Corps strives for constant improvement to provide the most efficient and effective services to Volunteers, staff, and host country partners in the fulfillment of its commitment to the American people. In addition 

to the continual efforts to evaluate and enhance staff effectiveness throughout the agency, the agency regularly 

reviews its business processes. 

Outcome Goals: 

5.1 	 Volunteers are safe, healthy, and well supported to ensure their focus on Peace Corps’ sustainable development and cross-cultural mission. 

5.2 	 The Peace Corps continually improves its staff and critical work processes and manages its resources in 

an effective and efficient manner. 

Performance Goal 5.1.1: Enhance the safety and security of Volunteers 

Agency Level Performance Indicators: 

Performance Goal 5.1.1: Enhance the safety and security 

of Volunteers 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Percentage of Volunteers reporting that their safety and security training is adequate or better 95% 96% 95% 95% 

b. Percentage of posts having their safety and security plans 

reviewed annually by Peace Corps safety and security officers N/A 21% 33% 33% 

c. Percentage of posts implementing critical recommendations 

focused on Volunteer/trainee safety and security on a timely 

basis 

N/A 84% 100% 56% 

d. Percentage of Volunteers reporting they feel “usually safe” or 

“very safe” where they live and work 87% 89% 90% 89% 

Results and Analysis: Two of the four targets were met for this performance goal. 

Maintaining the safety and security of Peace Corps Volunteers is a top priority. The risks associated with being a 

Volunteer have changed dramatically since the inception of the agency and its policies and practices continue to 

evolve to anticipate and adjust to these shifts. The agency provides training for Volunteers and monitors safety 

conditions in each host country. 

42 
 

 

Performance Section 

The vast majority of Volunteers report the training they receive from the agency prepares them for the safety 

and security challenges they face during service. Ninety-five percent of the Volunteers reported their safety and 

security training is adequate or better, which meets the FY 2010 performance target. eighty-nine percent of the 

Volunteers report they feel safe or very safe where they live and work, missing the target by 1 percent. 

The large majority of Volunteers report feeling safe during service. Slightly more Volunteers report they feel safe 

at work (91 percent) than at home (87 percent). Volunteers indicate their principal source of insecurity comes 

from the harassment and unwanted attention they face as a foreigner in their communities. Harassment includes 

catcalls, requests for money, marriage proposals, pinching, and derogatory comments about Americans. While 

unwanted attention does not present a high risk or fall into the category of violent crimes, Peace Corps provides 

training to help Volunteers handle these encounters. 

regional Peace Corps safety and security officers are responsible for conducting safety and security analyses for 

the posts, as well as providing overseas offices with technical safety and security expertise. During FY 2010, 33 

percent of the posts had their safety and security plans reviewed by a safety and security officer, meeting the target 

for this year. 

The Peace Corps met this goal by establishing and implementing a strategic plan for post security reviews and 

standardizing the process, including defining “critical recommendation.” However, the agency did not meet the 

target set for implementing those recommendations. Fifty-six percent of posts implemented critical recommendations for improving Volunteer safety and security procedures, significantly below the target of 100 percent. 

A variety of factors impeded posts’ ability to implement all of the identified recommendations. Some of the recommendations must be implemented during specific activities that take place at pre-determined intervals during the 

year, and therefore have not occurred yet. other recommendations are so recent that posts have not had an opportunity to implement them. Further, posts have noted that in many cases they do not have the budgetary resources 

to implement some of the recommendations. Finally, the process for systematically tracking the implementation 

of critical recommendations requires further improvement. 

The Peace Corps has taken steps to better achieve safety and security goals. In the FY 2010 Inspector General 

audit of the office of Safety and Security, several recommendations were made to improve the authority and management controls of that office. These recommendations will be fully implemented in FY 2011. 

The Peace Corps remains committed to preparing Volunteers for service and monitoring security situations in 

host countries. 

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Performance Section 

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Performance Goal 5.1.2: Provide quality medical and mental health services to trainees and Volunteers 

Agency Level Performance Indicators: 

Performance Goal 5.1.2: Provide quality medical and 

mental health services to trainees and Volunteers 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Percentage of Volunteers rating their satisfaction with health 

care received from Peace Corps medical officers as adequate 

or better 

92% 93% 90% 93% 

b. Percentage of Volunteers reporting the emotional support 

received from Peace Corps staff as adequate or better 80% 81% 75% 81% 

c. Percentage of Volunteers reporting adequate or better 

support in coping with stress issues such as food insecurity, 

HIV/AIDS and other stressors in their community 

53% 73% 65% 74% 

Results and Analysis: All three of the targets were met for this performance goal. 

one of the Peace Corps’ top priorities is to maintain each Volunteer’s physical and emotional health. The agency 

provides medical and emotional support to individuals serving in challenging environments around the world and 

monitors the Volunteers through overseas posts’ medical services and through the objective Annual Volunteer 

Survey. renewed emphasis was placed on this issue during FY 2010. 

All three indicators of Peace Corps’ medical and mental health services for Volunteers exceeded the FY 2010 

targets. These indicators reflect the high levels of Volunteer satisfaction with the Peace Corps’ health care (93 percent) and emotional support (81 percent). Also, a majority of Volunteers (74 percent) reported adequate or better 

support to help in coping with stressful issues such as HIV/AIDS and food insecurity in their communities. one 

Volunteer in rwanda, for example, wrote the following general comment: “The Peace Corps has been supportive 

and is very available if there are any problems. The new Peace Corps medical officer is very good. I have not needed 

to address problems with Peace Corps staff, but if I did, I think they would help me find solutions.” 

Several actions were implemented this year to ensure that Volunteers receive high quality health care from their 

Peace Corps medical officers: 

Intense site assessments were conducted at posts where Volunteers reported lower levels of satisfaction with 

their health care support 

Medical officers performing at an inadequate level were replaced 

Changes were implemented to strengthen medical officer credentialing 

Approval and oversight of medical budget expenditures were re-directed from posts to headquarters 

The agency has also undertaken several other changes to ensure high quality health care delivery from medical 

facilities to which Volunteers are referred by their medical officers, including: 

establishing a system of credentialing local medical providers 

Mandating medical officers conduct reviews of local health facilities 

Developing new site assessment forms for the posts and for local medical facilities 

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Performance Section 

Further, the agency trained medical officers through the Continuing Medical education program to augment 

posts’ emotional support to Volunteers in four skill areas: short-term mental health counseling, depressive disorders, anxiety disorders, and treatment of alcohol-related problems. 

Performance Goal 5.2.1: Provide effective and responsive financial management that accurately reflects 

domestic and overseas operations 

Agency Level Performance Indicators: 

Performance Goal 5.2.1: Provide effective and responsive 

financial management that accurately reflects domestic 

and overseas operations 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Percentage of posts and headquarters offices managing 

resources within approved budgets and operational plans N/A 83% 95% 84% 

b. Percentage of posts and headquarters offices annually 

reviewing resource management ratios for improvement N/A Not fully 

Implemented 95% 71% 

Results and Analysis: The agency did not meet the two targets for this performance goal. 

Fiscal responsibility continued to be an agency priority in FY 2010. The agency’s budget grew to accommodate 

growth in the number of Volunteers worldwide and to support new agency initiatives. 

All major offices and overseas posts are required to operate within their approved budgets and plans. Agency offices 

were quick to respond to the positive budget news in FY 2010 and adjusted operating plans accordingly. 

In general, agency overseas posts met their targets while accepting even greater numbers of Volunteers. eightyfour percent of the major domestic offices and posts met approved budget levels and properly executed operational 

plans. The offices and posts that under-executed their budgets did so primarily due to unfilled staff positions carried forward from FY 2009. However, almost all senior staff vacancies created during the change in administration 

last year were filled and the agency expects improved fiscal utilization in FY 2011 as a result. 

The development of new financial management ratios for an ever-changing agency has been challenging, yet the 

agency remains committed to strong financial oversight and performance. 

The agency continued a systematic review of resource management ratios in order to identify and monitor efficient 

and effective management and 71 percent of the departments established ratios. Departments began their reviews, 

analyzed their operations, and identified the best measurements for their particular organizations. Various organizational challenges, such as turnover and organizational realignment, slowed progress in establishing effective 

resource management ratios for all offices. Therefore, while the target of 95 percent was not met, significant progress was made in this area compared to FY 2009 when the indicator was not yet fully implemented. 

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Performance Section 

Performance Goal 5.2.2: Ensure the effective management of Peace Corps resources 

Agency Level Performance Indicators: 

Performance Goal 5.2.2: Ensure the effective 

management of Peace Corps resources 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Percentage of post projects engaging host country officials in 

their formulation and implementation 95% 94% 95% 96% 

b. Percentage of posts and headquarters offices with 

documented personnel practices that include staff 

development, performance management, and awards and 

recognition policies 

43% 56% 80% 61% 

Results and Analysis: The agency met one of the two targets for this performance goal. 

The Peace Corps executes a memorandum of understanding with each host country upon entry and collaborates 

with host country officials in developing technical programs to meet each country’s needs. The first indicator measures the degree to which this initial collaboration continues as the post projects unfold. This year the Peace Corps 

met its performance target. 

A project advisory committee engages host country partners with staff and Volunteers to ensure dialogue throughout the life of a project. Such committees are a key part of a process of systematic collaboration with stakeholders. 

Formal briefings are often appropriate for higher level officials, but many posts hold focus groups with regional and 

local level partners to help identify where Volunteers are most needed and what activities they will undertake. All 

posts conduct joint training with supervisors, partners, and Volunteers. 

Although the agency met its performance target, posts continue to face constraints that restrict their ability to 

collaborate with host country stakeholders. Thirty-eight percent of posts reported that high turnover rates in government ministries prevented or significantly hampered the development of stakeholder relations. In some cases, 

ministry and local officials are brought into the process at the beginning, but leave office within a few months. 

other countries reported that political changes keep officials in constant states of “campaigning” and that they 

have little time to participate in the development process. In some cases, the project advisory committee meetings 

were limited because host country officials expected Peace Corps to pay their per diem. Those posts, instead, relied 

on informal dialogues through phone conversations, focus groups, and other informal meetings with stakeholders. 

Although the number of overseas posts with documented personnel practices increased from last year, the 80 percent target was not met. Sixty-one percent of the agency’s operating units have documented practices in all three 

of the major areas of human resource management: performance, staff development, and awards. An additional 

31 percent have documented practices in two of the three required areas. eight percent have documented their 

personnel practices in one area. 

Headquarters’ staff operates under the personnel policies described in the Peace Corps Manual. overseas posts 

operate in compliance with local laws and regulations of each country. In FY 2010, the agency convened a working 

group to review and make recommendations on how posts can meet the requirements of this indicator. 

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Performance Section 

Performance Goal 5.2.3: Ensure optimal performance of critical Peace Corps processes 

Agency Level Performance Indicator: 

Performance Goal 5.2.3: Ensure optimal performance of 

critical Peace Corps processes 

FY 2008 

Baseline 

FY 2009 

Result 

FY 2010 

Target 

FY 2010 

Result 

a. Annually review, streamline, and implement improvements to 

at least one agency mission critical work process N/A Achieved Y/N Achieved 

Results and Analysis: The agency achieved the target for this performance goal. 

The Peace Corps, in its work to review and make changes to cross-cutting agency processes, has a number of advisory councils and communication mechanisms in place to review and recommend improvements to its programs. 

In FY 2010, the agency reviewed the human resource management policies for headquarters and proposed actions 

for improvement. 

The agency developed a Managers’ Strategic Planner, a companion to the Human Capital Management Plan that 

supports the agency’s Strategic Plan in areas of human capital.  Although the Human resource Management 

Department is responsible for developing the three-year Human Capital Management Plan (FY 2009-2011), Peace 

Corps’ managers have the responsibility and are accountable to ensure that the agency is meeting the human capital goals. The new planner is an online resource for managers and supervisors to access human capital information 

and significantly improves their ability to track and accomplish tasks and report on successful completion. 

This tool was approved by the Human resources Council, the intra-agency management team where information 

is shared about internal customer challenges and where new opportunities for improvement are identified. The 

tool provides transparency to the Human Capital Processes and Systems, which are required to be reported annually to the office of Personnel Management. 

Phase 1 is complete and contains information on Strategic Planning; Leadership and Knowledge Management; 

Talent Management; results-oriented Performance Culture; Balancing Work/Life Issues; and Accountability. 

Additional modules will be added in FY 2011. 

Volunteers are being encouraged to extend for a third year. The Peace Corps Volunteer 

Leadership Program permits third-year Volunteers to continue to work on development 

projects and also to help by mentoring and coaching new Volunteers, supporting the training 

process, and doing site development. With their experience and language abilities, third-year 

Volunteers are invaluable to the agency. 

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Performance Section 

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Program Evaluation 

In FY 2010, the Peace Corps proactively sought to further improve its evaluation practices, continuing to conduct 

the Annual Volunteer Survey, the host country impact study series, and redesign the online tool Volunteers use to 

report on the impact of their work. Additionally, in FY 2010, Peace Corps made the decision to undertake annual 

portfolio reviews of its country programs. These efforts encourage data-driven decision-making and the dissemination of best practices. The agency was invited to present the findings of the impact study research in three major 

forums: The Brookings Institution, the annual Association of International educators Conference, and the Third 

Annual Conference on Program evaluation sponsored by the U.S. Department of State. 

Annual Portfolio Reviews 

In FY 2010, the first year of Director Williams’ service, the Peace Corps undertook a management assessment of 

all operations. The first of the six recommendations in the Comprehensive Assessment calls on the agency to “Target resources and country presence across countries according to specific country selection criteria to maximize 

grassroots development impact and strengthen relationships with the developing world.” 

In the fourth quarter of FY 2010, the Peace Corps began work on the annual portfolio reviews of the country programs. The agency is currently analyzing existing sources of information and data, in addition to researching new 

sources of information to design the methodology for the portfolio reviews. FY 2011 will see the full implementation of this initiative, which will become standard operating procedure and inform the Peace Corps’ planning and 

resource allocation. 

Annual Volunteer Survey 

The Annual Volunteer Survey assesses Volunteers’ perceptions of their Peace Corps service: satisfaction with 

their service, training for assignments, staff support, safety and security and medical services, primary work 

assignments, the impact of their work, and HIV/AIDS activities. Volunteers are asked to describe their activities, 

the degree to which their technical and language training prepared them to carry out their work, and the extent to 

which their assignments built local capacity and fulfilled the three goals of the Peace Corps. The results provide a 

candid and comprehensive picture of activities, experiences, and impact from the Volunteers’ point of view. 

The survey is used for multiple purposes, including identifying trends and best practices; planning office and post 

priorities; and assessing performance. This information is shared widely within the agency and in FY 2010 the 

agency experimented with a number of different techniques to encourage utilization of this information both at 

headquarters and at the posts. 

Findings 

Goal 1 

Most Volunteers achieved their short-term goals of transferring skills to the people with whom they work. 

Many Volunteers work with young people and are involved in HIV/AIDS efforts—two activities likely to yield 

long-term capacity-building benefits for their host country communities. 

48 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

Performance Section 

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Volunteers expressed concerns about being fully prepared to do their Peace Corps jobs (Goal 1) and have 

requested additional training on working with host country counterparts and performing technical aspects 

of their work. 

Goal 2 and Goal 3 

Volunteers are achieving the Peace Corps’ Goal 2 and Goal 3. 

With better access to technology and communications, most Volunteers are able to communicate 

electronically with friends and family in the United States about life in their host country. 

Overall Volunteer Satisfaction 

Volunteers who have been in-country longer than a year are generally more satisfied with their primary 

assignment and secondary activities, as well as with their Peace Corps service overall. 

Volunteers most often mentioned stress as a result of the challenges of cross-cultural issues, their primary 

assignments, isolation/loneliness, and the local language. 

Host Country Impact Studies 

In FY 2010, the Peace Corps continued the host country impact series started in FY 2008. These country-specific 

impact evaluations measure the impact of Peace Corps Volunteers’ activities on two of the agency’s three goals: 

Goal 1–“To help the people of interested countries in meeting their need for trained men and women”; and Goal 

2–“To help promote a better understanding of Americans on the part of the peoples served.” By FY 2013, the 

majority of the Peace Corps posts will have conducted an impact study. 

The studies ask host country individuals (counterparts, host families, and beneficiaries) for their views on the 

changes that have occurred and the degree to which local needs were met and positive changes sustained through 

working with Volunteers. 

The evaluations provide the agency’s management with an independent assessment of Peace Corps’ programs 

because the studies are conducted by independent, host-country researchers who interview the host families and 

work partners. This approach ensures that the information about the impact of Volunteers’ work is gathered from 

the most direct sources: host country individuals who have worked with, interacted with, and/or lived with Volunteers. The studies are also relatively inexpensive to carry out. 

Peace Corps’ cutting edge program of host country impact studies is significantly enhancing the agency’s capacity 

to document its results concerning Goals 1 and 2. Washington University researcher Dr. Margaret Sheridan has 

noted that no other international volunteer organization is measuring the impact of volunteer service on the residents of the communities in which they serve. 

In just a short time, the impact studies have become an important tool that enhances the decision-making process used to allocate Volunteers and other resources among countries and to equip country leadership (both Peace 

Corps and host country leaders), to make evidence-based decisions via a previously untapped source of information. These impact evaluations have led to innovation and change in post administration of Volunteer training and 

program design. 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 49 
 

 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 

Performance Section 

Findings 

In FY 2010, eight studies were initiated in Botswana, Fiji, Guatemala, Peru, Philippines, Thailand, Togo, and 

Ukraine. Two of these, Guatemala and Ukraine, were completed in FY 2010. The remaining studies will be completed in FY 2011. Five studies started in FY 2009 (Cameroon, Jamaica, Mexico, Morocco, and Tanzania) were 

also completed in FY 2010. 

A total of 1,372 people have been interviewed to date. The data from 691 host country individuals in the seven 

countries in which studies were completed during FY 2010 are presented below. They are presented along with the 

data from 528 respondents in 2009 and 153 respondents in 2008, previously presented in the FY 2009 and FY 

2008 Performance and Accountability reports. 

The majority of respondents report using the skills they gained through their work on Peace Corps projects. They 

also report being satisfied with the project work, note that projects are sustained after the Volunteers leave, and 

would want to work with another Volunteer. 

Most respondents report a more positive view of Americans after interacting with Volunteers. The sustained 

interaction between Volunteers and host country nationals leads to significant gains in improved understanding. 

Goal 1: Capacity Building and Skills Transfer 

Outcome Area FY 2008 FY 2009 FY 2010 

Use project skills in their work life Not asked 99% 84% 

Use project skills in their personal life Not asked 92% 83% 

Satisfied with the Peace Corps project 96% 84% 96% 

Want to work with another Volunteer Not asked 95% 97% 

Goal 2: Promoting a Better Understanding of Americans 

Outcome Area FY 2008 FY 2009 FY 2010 

Had a more positive view of Americans after working with 

Volunteers 85% 84% 83% 

Had a more positive view after living with Volunteers 72% 87% 69% 

Had a more thorough understanding of Americans after working 

with Volunteers Not asked 75% 60% 

Had a more thorough understanding of Americans after living with 

Volunteers Not asked 87% 53% 

Post-initiated Evaluation Activity 

Peace Corps continually works to increase the effective use of evaluations at its posts. 

50 
 

 

  

Performance Section 

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Findings 

Forty-one posts conducted evaluations during FY 2010, by post staff, headquarters or outside evaluators. 

“our cross-sector food security initiative involves quarterly and annual evaluation of progress against our detailed 

implementation plan,” reported one respondent. 

The primary purpose for post evaluations was to determine the extent to which projects were meeting their goals. 

Posts also conducted administrative evaluations to support their budgeting and planning processes. Some posts 

reported audits of their financial and/or medical operations as a type of evaluation. Posts used the findings to: 

revise Volunteer training by incorporating detailed information from project partners about the most useful 

Volunteer work 

revise the goals and/or focus of Volunteers’ project plans 

Strengthen post monitoring and evaluation activities 

Monitoring and Evaluation Training 

Posts increased monitoring and evaluation training for staff to support the agency’s emphasis on accountability 

and measuring results. Headquarters staff provided significant support for these initiatives in the form of regional 

and post specific workshops. 

Findings 

Fifty-three of the 67 posts operating in FY 2010 (79 percent) provided evaluation training to Volunteers; 31 of 

the 67 posts (46 percent) provided training to staff. Twenty-two posts (33 percent) provided training to partners/ 

counterparts. 

Headquarters staff supported this post-level training at several regional and post-specific workshops in FY 2010 

by providing technical assistance to the workshop facilitators. Additionally, headquarters staff facilitated annual 

Web-based training for all posts on effectively using the Volunteer reporting Tool and completing annual status 

reports, both pieces of the agency’s standard monitoring and evaluation plan. 

Finally, the Jordan post received a comprehensive monitoring and evaluation review by headquarters staff, which 

included several training sessions. 

Evaluations Conducted by Headquarters Offices 

Four offices at headquarters conducted evaluations of their operations. 

Findings 

Summary of Process Evaluations Conducted at Peace Corps Headquarters 

Office of Medical Services: To improve the efficiency of the medical clearance process (reduce the length 

of time) for Peace Corps applicants, the office designed a study to compare the length of time required for 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 51 
 

  

Performance Section 

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the medical clearance process with two different approaches: applicants use their own physician (current 

practice) or applicants use Peace Corps-contracted physicians (test intervention). The evaluation is ongoing. 

Office of Private Sector Initiatives: The office’s goal is to reach new donors and increase the amount of 

money raised per donor. Peace Corps staff had been solely responsible for all fundraising. The office hired an 

outside firm to assist in fundraising for the 50th anniversary. The results of the two approaches to fundraising 

will be compared to determine the relative effectiveness of each approach. 

Overseas Programming and Training Support: The guidance provided to country posts on program 

design, training, and evaluation required revisions to ensure that Volunteers and staff appropriately 

monitored and evaluated activities. In leading the revision of the programming and training guidance, the 

office conducted a needs assessment and held small focus groups of those receiving guidance throughout the 

revision process. To date, users of the new guidance report that it is more efficient and effective in both its 

format and its content. evaluation of the guidance is ongoing to determine if project evaluations are more 

effectively conducted. 

Office of Public Engagement: The office is responsible for providing a range of career services to returned 

Peace Corps Volunteers (rPCVs). In recent years, the number of rPCVs requesting access to career 

conferences has increased. In order to meet the demand, the office increased the number of such conferences 

outside of the Washington, D.C., region. The participation rates by geographic area will be compared to 

determine if locating conferences closer to clusters of rPCVs will increase participation. 

Summary of Major FY 2010 Program Evaluations Findings and Conclusions 

Name of Report Issue 

Findings and 

Recommendations Agency’s Response 

Host Country 

Impact Studies 

The evaluation studies were 

developed as part of the 

Peace Corps Improvement 

Plan. In FY 2008, the agency 

piloted three studies to 

measure one of Peace Corps’ 

core goals – “To help promote 

a better understanding of 

Americans on the part of the 

peoples served”. The agency 

conducted nine studies in FY 

2009 and eight in FY 2010. 

The studies also ask host 

country partners and 

beneficiaries about the 

extent to which the work 

of the Peace Corps has met 

their need for trained men 

and women and built local 

capacity in a sustainable way. 

The studies’ findings 

indicate that the Peace 

Corps is promoting a better 

understanding of Americans 

among the peoples served. 

The scores vary across 

respondent types, sectors in 

which Volunteers work, and 

countries. 

It is recommended that 

additional studies be 

conducted. 

Host country nationals report 

they gain useful skills and 

knowledge, maintain the 

changes which result from 

their work with the Peace 

Corps, and are satisfied with 

the work conducted. 

Additional analysis by region 

and project sector is needed. 

Peace Corps uses the results 

to redesign Volunteer and 

partner training. Host 

families and work partner 

perceptions about Americans 

are shared with Volunteers 

in the re-designed crosscultural training. 

The Comprehensive Agency 

Assessment recommends 

expanding the number of 

studies completed per year 

from nine to 12. The agency 

will benefit from additional 

access to objective third 

party information regarding 

program performance. 

The agency is building 

capacity to implement this 

recommendation. 

52 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 

Performance Section 

Volunteer Project Reviews: Findings and Recommendations 

Name of Report Issue 

Finding and 

Recommendations Agency Response 

Volunteer Project 

Reviews 

Agency staff members 

conduct on-site reviews 

(process evaluations) of 

Volunteer projects in each 

sector. 

The on-site review research 

focuses on continuous 

learning through 

application, assessment, and 

redirection—learning by 

doing. 

Results from a survey of 

field staff in FY 2009 found 

that they perceived the site 

reviews as unhelpful and 

unnecessarily difficult for 

program managers. 

The Peace Corps needs to 

redesign the review process 

and standardize the use of the 

data to inform management 

decisions. 

The project plan review 

process was redesigned to be 

more efficient and effective. 

Two changes were made in 

the process: increase the 

level of technical support 

provided to the post during 

the review and decrease the 

time to report the results of 

the review to the post. 

The Office of Global 

Operations was created 

in FY 2010 to oversee the 

activities of the three 

geographic regions and the 

technical office. The office is 

encouraging more consistent 

use of agency performance 

data and data-driven 

decision-making. 

Focus Groups 

Survey with 

returned 

Volunteers 

and Survey 

of returned 

Volunteers 

No formal mechanism had 

existed at Peace Corps to 

collect comprehensive 

information from Volunteers 

after their service ends. To 

fill this gap, the Peace Corps 

conducted eight focus groups 

with returned Peace Corps 

Volunteers in FY 2010. 

The fourth decennial survey 

of returned Volunteers is 

underway and will provide 

the agency with important 

data on the impact of Peace 

Corps service on educational 

and career choices and 

continued involvement 

in international work and 

volunteer service, as well as 

their perspectives on agency 

outreach programs. 

The information from the 

focus groups suggests that 

returned Volunteers are 

actively engaged in speaking 

about Peace Corps at schools 

and other events. 

These returned Volunteers 

also suggested that the 

Peace Corps increase its 

commitment to engaging 

them in Third Goal activities 

and building RPCV networks. 

The agency has increased the 

level of resources devoted 

to serving the returned 

Volunteer community and will 

make further adjustments 

when the results of the survey 

are analyzed. 

Additional information about 

Peace Corps-sponsored 

activities to support returned 

Volunteers is provided in the 

discussion of the Strategic 

Indicator 3.1.2. 

Office of Inspector General Audits and Evaluations 

The Peace Corps’ office of the Inspector General (oIG) regularly conducts audits and evaluations concerning the 

effectiveness of programs that support Volunteers. Auditors focus on fiscal accountability and the effectiveness of 

internal controls over Peace Corps resources. evaluators analyze program operations of the Peace Corps at both 

overseas posts and domestic offices. These audits and evaluations analyze compliance with laws, regulations, and 

53 
 

 

 

Performance Section 

Peace Corps’ policies. They also identify internal control weaknesses and best practices and recommend program 

improvements and the means to comply with Peace Corps policies. 

Findings 

During FY 2010, oIG issued eight audit reports and four program evaluation reports concerning 11 countries. The 

audits were conducted in Burkina Faso, Cape Verde, Kenya, Moldova, Mongolia, Paraguay, Suriname, and Tanzania, and these reports related to administrative and financial operations at overseas posts. other work included: 

audit of the office of the Chief Information officer budget formulation and management; audit of the agency’s process for soliciting, awarding, and administering contracts; a review of the agency’s compliance with the Federal 

Information Security Management Act; and oversight of the independent auditor’s annual audit of the agency’s 

financial statements. oIG audit staff also performed special reviews at Peace Corps posts in ecuador, The Gambia, 

and Vanuatu. 

The evaluations were conducted in Morocco, Suriname, Togo, and Turkmenistan. The program evaluation reports 

addressed issues such as the extent to which each post has developed and implemented programs that met agency 

goals and provided adequate training, health care, support, and oversight to Volunteers to enable them to increase 

host country capacity and promote cross-cultural understanding. 

During FY 2010, the oIG audit, evaluations, and investigative units contributed staff resources to jointly produce an assessment of Morocco medical care and an audit of the Peace Corps Volunteer safety and security 

program. reports from oIG audits and evaluations are submitted to management, which then takes appropriate 

action to address any concerns that have been identified. 

Program Evaluations Conducted by the Office of the Inspector General: Findings and 

Recommendations 

Country Major Findings and Recommendations 

Turkmenistan • Turkmenistan is a challenging post for staff and Volunteers. Host country government 

restrictions, its control over Volunteer worksite selection, and limitations on activities within host 

communities have a considerable impact on program effectiveness and sustainability. 

• The post may not be able to meet the agency’s expectations for program growth; it was 

recommended that the viability of project plans be assessed before expanding the number of 

Volunteers. The post can also address some obstacles through memoranda of understanding 

with host government ministries. 

• Despite these challenges, it was determined that the Turkmenistan staff and Volunteers believe 

Peace Corps has the potential to make a positive contribution to the people of Turkmenistan. 

• Volunteers need accurate information about the reality of serving in Turkmenistan; the post must 

address this in pre-service information and during its training programs. Volunteers, particularly 

those over the age of 50, need additional support with language learning before and during 

service. 

54 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

 

 

Performance Section 

Country Major Findings and Recommendations 

Morocco • The Morocco program staff is experienced, resourceful, and dedicated to the Peace Corps mission, 

but staffing levels are insufficient to meet the complex support needs of the program and they 

are struggling under heavy workloads. 

• Volunteers are widely dispersed throughout mountainous and sometimes hard-to-access areas in 

Morocco and face an assortment of challenges during their service related to language, religion, 

politics, gender, and harassment. 

• Programming staff are stretched thin and struggle to provide Volunteer support needs, such as 

site visits, report feedback, and regular communication. 

• The Peace Corps medical officer and the medical unit’s large volume of work has had an impact 

on the quality of medical support to the Volunteers. Also, the safety and security coordinator is 

strained by a continuous flow of Volunteer communications. 

Suriname • Suriname has faced challenges developing and maintaining effective Volunteer assignments. 

A period of frequent senior staff turnover over several years had an impact on the stability of 

post operations. While obstacles remain, Suriname has made progress toward increasing the 

effectiveness of its operations and programs and furthering Peace Corps’ goals. 

• Suriname government representatives have positive working relationships with Peace Corps 

staff. They believe Volunteers have good language skills, are well-integrated into their host 

communities, and are making contributions to Suriname’s development. 

• Suriname does not have current agreements with project partners; this has created some 

confusion about roles and responsibilities of the cooperating parties. Government officials would 

like a more structured collaboration with Peace Corps, with program sectors and Volunteer 

assignments more directly centered on ministry goals. 

• The post is working to address site development and programming support challenges. Our 

review found the program staff members do not adequately engage host communities during 

site development, nor are they thoroughly assessing host community needs or a community’s 

capacity to host a Volunteer. 

• Volunteer housing did not consistently conform to established housing criteria. We recommended 

that staff inspect housing to ensure it meets the criteria prior to the Volunteer’s arrival. 

Togo • For more than 48 years, Togo has successfully met the First Goal of the Peace Corps mission – 

to help the people of interested countries in meeting their need for trained men and women. 

Volunteers are satisfied with their assignments and feel positive about accomplishing their 

project goals and objectives. 

• Training is a strong point for Togo. Volunteers are satisfied with the effectiveness of pre-service 

training and expressed high regard for the host family experience as good preparation for service. 

• Some Volunteer projects have been slow to develop due to challenges identifying appropriate 

counterparts to undertake project activities. The post needs to address this issue during site 

development and encourage the community to provide housing. 

• Volunteers report they are generally well-supported by Togo staff, but flagged uneven staff 

communication or follow-up as areas that need improvement – particularly program manager’s 

site visits, follow-up to Volunteer Reporting Tool submissions, and responsiveness to diversity 

issues. 

• Volunteers are not in compliance with Togo’s out-of-site policy and Volunteer site locator forms 

frequently contained inaccuracies, which would make them less useful during an emergency 

situation. 

• The post needs to engage in more regular, substantive communication with national ministry 

officials and re-energize its project advisory council with more frequent meetings and activities. 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 55 
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FINANCIAL SeCTIoN 

Business Volunteer teaches basic business 

techniques and marketing skills to leather artisans. 
 

 

Financial Section 

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Message from the Chief Financial Officer 

The Peace Corps again received an unqualified (clean) audit opinion issued by external auditors 

Clifton Gunderson LLP during the FY 2010 financial statement audit. For the fourth consecutive year, no material 

weaknesses or federal system noncompliances were identified during the financial audit or otherwise within the 

agency. The Peace Corps also received, for the third consecutive year, the prestigious Association of Government 

Accountants’ Certificate of excellence in Accountability reporting award for quality reporting in the FY 2009 

Performance and Accountability report. During FY 2010, the agency’s financial system, odyssey, was successfully recertified and accredited, reconfirming our strong financial management foundation. 

These achievements can only be attained through the continuing dedicated efforts of the financial management 

team and others who support financial management throughout the three regions, the worldwide posts, and within 

the headquarters. our goal is to always provide excellent service to our Volunteers and to manage the resources 

provided to the agency in the most effective and efficient manner. This fiscal year we provided budget, finance, and 

accounting support for 77 countries encompassing more than 81 currencies for over 8,600 Volunteers. We strive 

to improve financial management each year. 

The financial position of the agency continues to improve significantly with the support of the President and the 

U.S. Congress, allowing us to increase the number of Volunteers and provide the necessary support throughout 

the agency. 

The two significant deficiencies and 12 audit recommendations identified during the FY 2009 audit were monitored throughout the year by the operational managers and the senior assessment team through the corrective 

action plan. one significant deficiency, Accounting Business Processes Need Improvement, and its two audit 

recommendations were successfully reduced in severity level during FY 2010, while one significant deficiency, 

Information System Security, and its audit recommendations were not successfully mitigated. Audit recommendations not resolved during this fiscal year were due to pending future events, systems implementation, and other 

agency priorities. 

The FY 2010 audit identified two significant deficiencies in our internal controls for Property, Plant, and equipment and Information System Security. The 12 audit recommendations for these two significant deficiencies and 

the estimated completion dates for the corrective actions are addressed in Appendix 1, Summary of Audit Significant Deficiencies. 

our FY 2010 financial management improvements include: 

Negotiated a $46.15 million increase in the President’s FY 2011 budget to Congress 

Implemented a readjustment allowance increase for the first time in 11 years to better support Volunteer 

living costs 

obtained $5 million through open obligation reviews by closing or adjusting obligations in current and prior 

years’ (expired) funds 

Implemented the Citi Declining Balance Card, allowing closure of the domestic imprest fund (headquarters 

cashier bank account) that previously made cash payments for Volunteer medical evacuations and the initial 

orientation (staging) of Volunteers, significantly reducing the risk of fraud 

58 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

 

 

 

Financial Section 

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Converted 100 percent of the posts from paper checks to electronic funds transfer for those posts with 

electronic funds transfer technology capability 

In-sourced the office of Global Accounts Payable document processing payment function by replacing 

contractors with direct hire employees, resulting in an annual savings of $220,083 

Completed the first archiving of Volunteers’ description of service documents from 1960 to the present and 

had the documents declared permanent historical documents by the U.S. National Archives 

Corrected the 1989 Social Security filing for more than 9,000 former Volunteers 

Volunteer In-Country Allowances (VICA), a Web-based payment application, was successfully piloted and implemented at all posts during FY 2010. VICA eliminated duplicate data entry and enabled posts to efficiently process 

their Volunteers’ in-country allowances and interface with odyssey, the agency financial system. eighty-five percent of the VICA payments are now individual electronic funds transfers to Volunteer accounts, compared to 1 

percent of the same type payments in FY 2009. 

During the fourth quarter of FY 2010, a new budgeting, planning, and forecasting software, Hyperion Planning, 

was implemented. Hyperion integrates data from odyssey, the agency’s financial system, and uses agency and 

region projections to calculate Volunteer requirements, allowing more thorough analysis by the budget personnel. 

Hyperion also automated the unfunded requirement request process to provide better visibility and status tracking of the agency’s funding decisions. 

our most significant financial management challenge continues to be improving operational growth and infrastructure efficiently and cost-effectively to meet planned future Volunteer growth to 10,000 in FY 2011. We are 

also working to integrate an electronic savings bond process for the Volunteers in FY 2011. 

While the agency continues to recognize the benefits of formally correlating costs to the agency strategic goals and 

outputs, the accounting system currently is not capable of accurately capturing those costs. The agency operates 

as one program with the purpose of providing trained Volunteers to host countries to promote world peace and 

friendship. 

The Peace Corps’ financial statements and notes that follow are both reliable and complete. The documents were 

prepared in accordance with generally accepted accounting principles for federal government entities and were 

subjected to an independent audit. 

We are moving forward in FY 2011, seeking new improvements in financial management, continuing to promote 

effective internal controls, and working diligently toward securing future unqualified audit opinions. 

Joseph L. Hepp, Jr. 

Chief Financial officer 

November 15, 2010 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 59 
The accompanying notes are an integral part of these financial statements

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Financial Section 

Financial Statements 

Peace Corps 

Balance Sheet 

As of September 30, 2010 and 2009 

(In Thousands) 

Assets

2010 2009 

 Intragovernmental

 Fund Balance With Treasury (Note 2 and 3) $ 189,675 $ 139,058 

Accounts Receivable (Note 5) 780 878

 Total Intragovernmental 190,455 139,936

 Cash and Other Monetary Assets (Note 4) - 40

 Accounts Receivable, Net (Note 5) 26 17

 General Property, Plant, and Equipment, Net (Note 6) 31,869 30,503

 Other

 Prepaid Volunteer Living Allowances (Note 7) 3,907 3,863

 Other Assets (Note 8) 2,835 2,485

 Subtotal Other 6,742 6,348 

Total Assets $ 229,092 $ 176,844 

Liabilities

 Intragovernmental 

Accounts Payable $ 2,590 $ 1,219 

 Other

 Unfunded FECA Liability (Note 9) 29,871 27,560

 Other Liabilities (Note 10) - 2

 Subtotal Other 29,871 27,562

 Total Intragovernmental 32,461 28,781

 Accounts Payable 13,190 9,104

 Federal Employee and Veterans Benefits (Note 9) 138,157 121,902 

Other

 Other Employment Related Liability (Note 9) 9,319 5,629

 Non-Entity Funds (Note 2) 41,880 40,060

 Accrued Funded Payroll and Leave 6,268 5,346

 Unfunded Annual Leave (Note 9) 8,675 7,237

 Other Liability (Note 10) 46 -

Subtotal Other 66,188 58,272

 Total Liabilities 249,996 218,059 

Commitments and Contingencies (Note 11) 

Net Position

 Unexpended Appropriations 121,532 80,239

 Cumulative Results of Operations (142,436) (121,454) 

Total Net Position $ (20,904) $ (41,215) 

Total Liabilities and Net Position $ 229,092 $ 176,844 

The accompanying notes are an integral part of these financial statements 

60 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
The accompanying notes are an integral part of these financial statements

 

 

Financial Section 

Peace Corps
 

Statement of Net Cost
 

For the Periods Ended September 30, 2010 and 2009
 (In Thousands) 

2010 2009 

Program Costs:

 Gross Costs 

Less: Earned Revenue (Note 12) 

$ 390,374 

4,000 

$ 327,233 

3,610 

Net Cost of Operations $ 386,374 $ 323,623 

The accompanying notes are an integral part of these financial statements 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 61 
Peace Corps

Statement of Changes in Net Position

For the Periods Ended September 30, 2010 and 2009

(In Thousands)

The accompanying notes are an integral part of these financial statements The accompanying notes are an integral part of these financial statements

2010 2009

Cumulative Results of Operations:

Beginning Balances $ (121,454) $ (126,984)

Adjustments

 Corrections of Errors - 122

Beginning Balances, As Adjusted (121,454) (126,862)

Budgetary Financing Sources:

 Appropriations Used 358,442 322,738

Other Financing Sources (Non-Exchange):

 Transfers-In/Out Reimbursement 387 250

 Imputed Financing (Note 16) 6,563 6,043

Total Financing Sources 365,392 329,031

Net Cost of Operations 386,374 323,623

Net Change (20,982) 5,408

Cumulative Results of Operations (142,436) (121,454)

Unexpended Appropriations:

Beginning Balances 80,239 68,274

Adjustments

 Changes in Accounting Principles - 3

 Corrections of Errors - (1)

Beginning Balances, As Adjusted 80,239 68,276

B dugetary Financing Sources: Fi i S

 Appropriations Received 400,000 340,000

 Appropriations Transferred In/Out - (2,000)

 Other Adjustments (265) (3,299)

 Appropriations Used (358,442) (322,738)

 Total Budgetary Financing Sources 41,293 11,963

Total Unexpended Appropriations 121,532 80,239

Net Position $ (20,904) $ (41,215)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Section 

Peace Corps 

Statement of Changes in Net Position 

For the Periods Ended September 30, 2010 and 2009 

(In Thousands) 

2010 2009 

Cumulative Results of Operations: 

Beginning Balances $ (121,454) $ (126,984) 

Adjustments

 Corrections of Errors - 122 

Beginning Balances, As Adjusted (121,454) (126,862) 

Budgetary Financing Sources:

 Appropriations Used 358,442 322,738 

Other Financing Sources (Non-Exchange):

 Transfers-In/Out Reimbursement 387 250

 Imputed Financing (Note 16) 6,563 6,043 

Total Financing Sources 365,392 329,031 

Net Cost of Operations 386,374 323,623 

Net Change (20,982) 5,408 

Cumulative Results of Operations (142,436) (121,454) 

Unexpended Appropriations: 

Beginning Balances 80,239 68,274 

Adjustments

 Changes in Accounting Principles - 3

 Corrections of Errors - (1) 

Beginning Balances, As Adjusted 80,239 68,276 

Bdugetary Financing Sources: Fi i S

 Appropriations Received 400,000 340,000

 Appropriations Transferred In/Out - (2,000)

 Other Adjustments (265) (3,299)

 Appropriations Used (358,442) (322,738)

 Total Budgetary Financing Sources 41,293 11,963 

Total Unexpended Appropriations 121,532 80,239 

Net Position $ (20,904) $ (41,215) 

The accompanying notes are an integral part of these financial statements 

62 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
The accompanying notes are an integral part of these financial statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Section 

Peace Corps

 Statement of Budgetary Resources 

For the Periods Ended September 30, 2010 and 2009

(In Thousands) 

2010 2009 

Budgetary Resources: 

Unobligated Balance, Brought Forward, October 1 $ 29,980 $ 24,921 

Recoveries of Prior Year Unpaid Obligations, Actual 8,919 7,778 

Budget Authority

 Appropriation 400,000 340,000

 Spending Authority From Offsetting Collections

 Earned

 Collected 6,554 4,872

 Change in Receivables from Federal Sources (98) 248

 Change in Unfilled Customer Orders

 Advance Received (2) -

Without Advance from Federal Sources 38 (8) 

Subtotal 406,492 345,112 

Nonexpenditure Transfers, Net, Anticipated and Actual:

 Actual Transfers, Budget Authority - (2,000) 

Permanently Not Available

 Cancellations of Expired and No-Year Accounts (574) 3,252 

Total Budgetary Resources $ 444,817 $ 372,559 

Status of Budgetary Resources: 

Obligations Incurred:

 Direct (Note 13) $ 382,380 $ 339,280 

Reimbursable (Note 13) 3,905 3,299

 Subtotal 386,285 342,579 

Unobligated Balance:

 Apportioned 48,292 22,829 

Unobligated Balance Not Available 10,240 7,151 

Total Status of Budgetary Resources $ 444,817 $ 372,559 

Ch i Obli t d B l Change in Obligated Balance:

Obligated Balance, Net

 Unpaid Obligations, Brought Forward, October 1 $ 70,481 $ 62,396 

Uncollected Customer Payments from Federal Sources, Brought Forward, October 1 (1,085) 840 

Total Unpaid Obligated Balance, Net 69,396 61,556 

Obligations Incurred, Net 386,285 342,579 

Gross Outlays (357,533) (326,716) 

Recoveries of Prior Year Unpaid Obligations, Actual (8,919) (7,778) 

Change in Uncollected Customer Payments from Federal Sources 60 (240) 

Obligated Balance, Net, End of Period

 Unpaid Obligations 90,315 70,481

 Uncollected Customer Payments from Federal Sources (1,026) (1,081)

 Total Unpaid Obligated Balance, Net, End of Period $ 89,289 $ 69,400 

Net Outlays:

 Gross Outlays $ 357,533 $ 326,716 

Offsetting Collections (6,553) 4,872

 Net Outlays $ 350,980 $ 321,844 

The accompanying notes are an integral part of these financial statements 

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Financial Section 

Notes to the Financial Statements 

Note 1 Significant Accounting Policies 

a) Reporting Entity 

The Peace Corps was initially established by President John F. Kennedy pursuant to Executive Order 10924 on 

March 1, 1961, and was subsequently formalized by the Peace Corps Act of 1961. The Peace Corps is an independent agency within the executive branch of the United States government. 

The core mission of the Peace Corps is to promote world peace and friendship by making available to interested, less developed countries men and women of the United States qualified for service abroad and willing to 

serve, even under conditions of hardship if necessary. The Peace Corps’ goals are to help the people of interested countries in meeting their need for trained men and women; to help promote a better understanding of 

Americans on the part of the peoples served; and to help promote a better understanding of other peoples on 

the part of Americans. 

b) Basis of Presentation 

The financial statements present the financial position, the net cost of operations, and changes in net position 

along with budgetary resources activities of the agency pursuant to the requirements of 31 U.S.C. 3515 (b). 

They have been prepared using Peace Corps’ books and records in accordance with agency accounting policies, the most significant of which are summarized in this note. The statements are in addition to the financial 

reports used to monitor and control budgetary resources, which are prepared from the same books and records. 

The statements are presented in accordance with the applicable form and content requirements of OMB Circular A-136, Financial Reporting Requirements, issued September 2010. The statements should be read with the 

realization that they are for a component of the U.S. government, a sovereign entity. 

The Peace Corps’ accounting policies follow Federal Accounting Standards Advisory Board standards and 

other generally accepted accounting principles for the United States federal government. 

The financial statements are subdivided in two categories: intragovernmental and public. The intragovernmental balances, revenues, and costs reflect financial transactions between the Peace Corps and other federal 

agencies. Public activities are those with non-governmental customers, including Volunteers, contributors, 

employees, contractors, and vendors. 

Federal Financial Statements 

Statement Federal Objective 

Balance Sheet Reflects the agency’s financial position as of the statement date. The assets are the amount of future economic 

benefits owned or managed by the agency. The liabilities are amounts owed by the agency. The net position is 

the difference between the assets and liabilities. 

Statement of 

Net Cost 

Shows separately the components of the net cost of the agency’s operations for the period. Net cost is equal to 

the gross cost incurred by the agency less any exchange revenue earned from its activities. 

Statement of 

Changes in 

Net Position 

Explains how the net cost for the agency’s operations was funded, and reports other changes in equity that are 

not included in the Statement of Net Cost. It reflects the changes in both the proprietary and the budgetary activities through the respective components: Cumulative Results of Operations and Unexpended Appropriations. 

Statement of 

Budgetary 

Resources 

Provides information about how budgetary resources were made available as well as their status at the end of 

the period. It is the only financial statement exclusively derived from the agency’s budgetary general ledger in 

accordance with budgetary accounting rules. 

c) Basis of Accounting 

Accounting principles encompass both accrual and budgetary transactions. Under the accrual method, revenues are recognized when earned and expenses are recognized when a liability is incurred, without regard to 

receipt or payment of cash. Under the budgetary basis, however, fund availability is recorded based upon legal 

considerations and constraints. The agency receives financing sources through direct appropriations from the 

general fund of the U.S. Treasury to support its operations. This financing source—appropriations used—is 

recognized to the extent that appropriation authority has been applied against received goods and services. 

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Financial Section 

d) Fund Accounting Structure 

The agency’s financial activities are accounted for by U. S. Treasury Appropriation Fund Symbol. They include accounts for appropriated funds and other fund groups described below for which the Peace Corps maintains financial records. 

General Funds—These funds consist of the receipts and expenditures by the government that are not earmarked by law for a specific purpose and used to fund agency operations and capital expenditures. 

Special or Trust Funds—These funds consist of receipts and expenditures by the government for carrying out 

specific purposes and programs in accordance with terms of the statute that designates the fund as a special 

fund or trust fund. The balances in the agency’s trust funds are non-entity assets and are included in the financial statements. 

Deposit Funds—These funds consist of monies held temporarily by the Peace Corps as an agent for others. 

These include allowance and allotment accounts for employees and Volunteers. The balances in these funds 

are non-entity assets and are included in the financial statements. 

General Fund Receipt Accounts—These funds consist of monies collected by the Peace Corps that are returned to the U.S. Treasury and not available for Peace Corps’ use. 

e) Budget Authority 

Congress annually passes multi-year appropriations that provide the agency with authority to obligate funds 

over a two-year period for necessary expenses to carry out operations. After the right to create new obligations 

has expired, this two-year budget authority is available for five additional years for adjusting obligations and 

for completing the liquidation of open obligations, advances, and receivables. After the five-year period, all 

open transactions for the respective fiscal year will be cancelled and funds will be returned to the U.S. Treasury. Any valid claims associated with these funds after closure must be processed against current year funds. 

In addition, Congress enacts no year appropriations that are available until expended. All appropriations are 

subject to OMB apportionment as well as Congressional restrictions. The agency places internal restrictions to 

ensure the efficient and proper use of all funds. 

f) Revenues and Other Financing Sources 

Peace Corps’ operations are financed through appropriations, proceeds from the sale of property, and interagency agreements. For financial statement purposes, appropriations are recorded as a financing source and 

reported on the Statement of Changes in Net Position at the time they are recognized as expenditures. 

g) Fund Balance with the Treasury 

The Fund Balance with the U. S. Treasury consists of appropriated funds that are available to pay current liabilities and finance authorized purchase commitments, and special funds that periodically are direct-financing 

reimbursements to the appropriated funds. 

The agency does not maintain cash in commercial bank accounts for the funds reported in the balance sheet. 

All cash receipts and disbursements are processed by the U.S. Treasury or the Department of State (DOS). 

The funds that make up post cashiers’ imprest funds belong to the U.S. Treasury through DOS’s accountability. These funds are routinely used to pay for small-value purchases of goods and services and are also used to 

make an occasional emergency payment. Per agreement with DOS, the Peace Corps is responsible for paying 

for any losses incurred by the cashiers that would normally fall on the account holder. All international payments made by DOS on behalf of the Peace Corps are charged to the Peace Corps and reduce the applicable 

Peace Corps’ appropriation unexpended balance in U.S. Treasury records. As of September 30, 2010, cashier 

imprest funds represented by cash on hand, checks on hand, interim advances, and cashier checking account 

balances totaled approximately $1.4 million in U. S. dollar equivalents. 

Fund balance with Treasury is carried forward until such time as goods or services are received and payment 

is made, or until the funds are returned to the U.S. Treasury. 

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h) Foreign Currency 

Accounting records for the agency are maintained in U.S. dollars, while a significant amount of the overseas 

expenditures are in foreign currencies. For accounting purposes, overseas obligations and disbursements are 

recorded in U.S. dollar equivalents based on the budgeted rate of exchange as of the date of the transaction. 

Foreign currency payments are made by the U.S. disbursing officers located at the Department of State Financial Service Centers in Charleston, South Carolina, and Bangkok, Thailand. 

i) Accounts Receivable 

Accounts receivable includes amounts due from other federal entities and from current and former employees 

and Volunteers. Annually, a determination of the amount of the Allowance for Doubtful Accounts will be established for material amounts of nonfederal (public) debt exceeding $30,000. The agency recognizes an Allowance for Doubtful Accounts when it is determined that the amounts are more likely than not to be totally 

uncollected. Accounts with approved payment plans in place and for which the debtor is meeting the terms of 

the plan are exceptions to this write-off policy. 

j) Advances and Prepayments 

Payments in advance of the receipt of goods and services are recorded as advances and recognized as expenses 

when the related goods and services are received. Advances are made principally to agency employees for 

official travel and prepayments to Volunteers for living allowances. 

Pursuant to Section 5(b) of the Peace Corps Act, Peace Corps Volunteers are entitled to a living allowance in 

order that they may serve effectively and safely overseas. Living allowances are paid to Volunteers to provide 

support while in their country of assignment. Allowances are based on local living standards and costs, including food, clothing, household items, rent, utilities, and local transportation. 

k) Property, Plant, and Equipment (PP&E) 

The agency capitalizes property, plant, and equipment that has an individual acquisition cost of $25,000 or 

greater, a useful life of two years or more, not intended for sale in the ordinary course of business, and intended to be used or available for use by the entity. Aggregate purchases of General Property, Plant, and 

Equipment in the amount of $500,000 or greater are capitalized. Software purchased for $25,000 or developed 

for internal use at a cost of $25,000 or greater is capitalized and amortized over its expected life (currently 3 to 

9 years). Vehicles in the amount of $10,000 and over are capitalized. Acquisitions that do not meet these criteria are recorded as operating expenses. Assets are capitalized at historical cost and depreciated using the 

straight-line method. The agency has established a policy that uses an estimated salvage value of 40 percent 

for the agency’s vehicles based on their resale value in recent years. 

Nonexpendable personal property is depreciated over 3 to 15 years. The agency operates land, buildings, and 

equipment that are provided by the General Services Administration and overseas. Rent for General Services 

Administration property is expensed. Deferred maintenance amounts are immaterial with respect to the financial statements. 

l) Accounts Payable and Other Liabilities 

Liabilities represent the amount of monies or other resources that are likely to be paid as the result of a transaction or event that has already occurred. Liabilities classified as not covered by budgetary resources are liabilities for which appropriations have not been enacted. 

m) Employee Benefits 

I.	 Federal Employees Compensation Act (FECA) Accrued Claims—FECA provides income and medical cost 

protection to covered federal civilian employees injured on the job, to employees who have incurred workrelated occupational diseases, and to beneficiaries of employees whose deaths are attributable to job-related 

injuries or occupational diseases through the Department of Labor (DOL). The FECA liability consists of two 

components. The first component is based on actual claims paid by DOL but not yet reimbursed by the Peace 

Corps. The Peace Corps reimburses DOL later as funds are appropriated for this purpose. This is the liability 

for the actual claims paid by DOL to be reimbursed by the Peace Corps. 

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Financial Section 

II.	 Future Workers Compensation Benefits—The second component of FECA is the estimated actuarial liability 

for future benefit payments as a result of past events. This liability includes death, disability, medical, and 

miscellaneous costs. DOL determines this component annually as of September 30, and the Peace Corps recognizes an unfunded liability to DOL for the estimated future payments. 

III. Accrued Leave—A liability for annual leave is accrued as leave is earned and paid when leave is taken or 

employment terminates. Accrued annual leave is paid from future funding sources and is reflected as a liability not covered by budgetary resources. Sick and other leave is expensed as taken. 

IV. Employee Health Benefits and Life Insurance—The agency’s employees are eligible to participate in the contributory Federal Employees Health Benefit Program and the Federal Employees Group Life Insurance Program. The agency contributes to each program to pay for current benefits. 

V.	 Post-Retirement Health Benefits and Life Insurance—Agency employees who may be eligible to participate 

in the Federal Employees Health Benefit Program and the Federal Employees Group Life Insurance Program 

could continue to do so during retirement. The Office of Personnel Management (OPM) has provided the 

agency with cost factors that estimate the true cost of providing the post-retirement benefit to current employees. The agency recognizes a current cost for these and other retirement benefits at the time of employment with the agency. The other retirement benefit expense is financed by OPM and offset by the agency 

through the recognition of an imputed financing source on the Statement of Changes in Net Position. 

VI. Employee Retirement Benefits—Peace Corps direct hire employees participate in one of three retirement systems: Civil Service Retirement System, Federal Employees Retirement System, or the Foreign Service Retirement and Disability System. Foreign Service National (FSN) employees at overseas posts who were hired 

prior to January 1, 1984, are covered under the Civil Service Retirement System. FSNs hired after that date 

are covered under a variety of local government plans in compliance with the host country’s local laws and 

regulations. 

The Peace Corps recognizes its share of the cost of providing future pension benefits to eligible employees 

throughout their period of employment. The pension expense not covered by budgetary resources is calculated using actuarial factors provided by OPM and is considered imputed cost to the agency. 

VII.Valuation of Host Country Resident Personal Services Contractor Severance and Retirement Liability—The 

Peace Corps is generally liable for separation or retirement payments to eligible host country resident personal 

services contractors (PSCs) in countries that require payments under local labor laws. Until systems are in place 

to track this liability in a timely manner, the estimate of the current and future costs of the severance and retirement liability is determined annually. 

n) Commitments and Contingencies 

The agency is involved in various administrative proceedings, legal actions, and claims arising in the ordinary 

course of business. Contingencies are recognized as a liability when a future outflow or other sacrifice of resources is probable and measurable. 

o) Use of Estimates 

The preparation of financial statements required management to make some estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the amount of revenues and costs reported during the period. Actual results could differ 

from those estimates. 

p) Interest on Late Payments 

Occasionally, the agency incurs interest penalties on late payments. Such interest penalties are paid to the respective vendor in accordance with the guidelines mandated by the Prompt Payment Act, P.L. 97–177, as 

amended. 

q) Intragovernmental Net Costs 

The Statement of Net Cost is consolidated for the agency using a budget functional classification code. This 

code is used to classify budget resources presented in the budget of the United States government per OMB. 

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68 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 

The agency is categorized under budget functional classification code number 150—International Affairs. 

Gross cost and earned revenues from other intragovernmental agencies (reimbursable agreements) fall under 

this code. 

r) Adjustments to Maintain Inherent Account Relationship Integrity 

In order to correct the relationships between the proprietary and budgetary accounts, a high-level analysis was 

performed. Cash balances were adjusted to align with the U.S. Treasury fund balance to permit the agency to 

pass edit checks and submit FACTS II reports to Treasury. All of the adjustments for fiscal year 2010 were 

immaterial. 

s) Allocation Transfer 

The Peace Corps is a party to allocation transfers with the Department of State as a receiving (child) entity. 

Allocation transfers are legal delegations by one agency of its authority to obligate budget authority and outlay 

funds to another agency. A separate fund account (allocation account) is created in the U. S. Treasury as a 

subset of the parent fund account (Department of State) for tracking and reporting purposes. All allocation 

transfers of balances are credited to this account, and subsequent obligations and outlays incurred by the child 

entity (Peace Corps) are charged to this allocation account as they execute the delegated activity on behalf of 

the parent entity. All financial activity related to these allocation transfers (e.g., budget authority, obligations, 

and outlays) is reported in the financial statements of the parent entity, from which the underlying legislative 

authority, appropriations, and budget apportionments are derived. 

t) Fiduciary Activities 

Fiduciary activities consist of Host Country Contributions provided to the Peace Corps by the host country 

government which are accepted under the authority of section 22 USC 2509(a)(4) of the Peace Corps Act. 

These contributions provide host country support for the Peace Corps and help defray expenses, enabling the 

Agency to use its budget more effectively. The host country retains ownership though the funds are deposited 

in special foreign currency accounts in the US Treasury. Any funds not used are returned to the host country. 

Note 2 Non-Entity Assets 

Non-entity assets are composed of trust fund, special fund, deposit funds, and clearing accounts. These funds are 

not available for the use of the Peace Corps and are not part of the Peace Corps’ resources. The Peace Corps monitors collections, status, and distribution. Below, as information, are the U.S. Treasury fund balances of non-entity 

assets which are non-governmental. 

Non-Entity Assets 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Trust Fund 

FSN Separation Liability Trust Fund $ 7,309 $ 7,222 

Special Fund 

Host Country Residents Contractors Separation 

Liability Fund 13,102 13,971 

Deposit Funds 

Volunteer Readjustment Allowance 21,093 18,325 

Volunteer Payroll Allotment Account (Payroll Savings - 11 

Bond Account) 

Clearing Accounts 376 531 

Total Non-Entity Assets 41,880 40,060 

Total Entity Assets 187,212 136,784 

Total Assets $ 229,092 $ 176,844 

Trust Fund—The FSN Separation Liability Trust Fund represents the estimated accrued liability for separation 

pay (based on local labor law) of the FSN employees. 

Special Fund— Host Country Residents Contractor Separation Liability Fund represents the estimated accrued 

liability for separation pay (based on local labor law) of the personal services contractors. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Section 

Deposit Funds—The Volunteer readjustment allowance is an allowance earned by Volunteers for each month of 

satisfactory service and payable upon their return to the United States. The Volunteer payroll allotment account 

reflects the value of held U. S. government bonds purchased by the Volunteers through allotments from the readjustment allowance. The bonds allow the Volunteers to earn interest on their earnings while in service overseas. 

Clearing Accounts—The proceeds of sales funds represent cash received from the sale of assets, primarily vehicles, and available to be reinvested in a like-kind replacement purchase (e.g., proceeds from vehicle sales used to 

purchase replacement vehicles). 

Note 3 Fund Balance with Treasury 

Fund Balances 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Appropriated Funds $ 147,795 $ 98,998 

Total Non-Entity Assets (Note 2) 41,880 40,060 

Total $ 189,675 $ 139,058 

September 30, 2010 September 30, 2009 

Status of Fund Balance with Treasury (in thousands) (in thousands) 

Unobligated Balance 

Available $ 48,292 $ 22,829 

 Unavailable 10,240 7,151 

Obligated Balance Not Yet Disbursed 131,143 109,078 

 Total $ 189,675 $ 139,058 

The Fund Balance with Treasury is equal to the unobligated balance of funds plus the obligated balance not yet disbursed. 

Available Unobligated Balance—Composed of apportionments available for allotment plus allotments available for 

obligation or commitment. 

Unavailable Unobligated Balance—Composed of unapportioned authority plus unobligated appropriation authority 

from prior years that is no longer available for new obligations. This latter authority is only available for adjustments 

to existing obligations. 

Note 4 Cash and Other Monetary Assets 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Total Cash and Other Monetary Assets $ - $ 40 

The imprest funds held in U.S. currency at headquarters were closed during FY 2010. 

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Financial Section 

Note 5 Accounts Receivable, Net 

Accounts Receivable as of 

September 30, 2010 

(in thousands) 

Accounts 

Receivable, 

Gross 

Allowance for 

Doubtful Accounts 

Accounts 

Receivable, 

Net 

Intragovernmental $ 780 $ - $ 780 

Other 26 - 26

 Total $ 806 $ - $ 806 

Accounts Receivable as of 

September 30, 2009 

(in thousands) 

Accounts 

Receivable, 

Gross 

Allowance for 

Doubtful Accounts 

Accounts 

Receivable, 

Net 

Intragovernmental $ 878 $ - $ 878 

Other 17 - 17

 Total $ 895 $ - $ 895 

Intragovernmental receivables are due from other federal agencies for services provided per reimbursable agreements. 

Other accounts receivable are due from nonfederal entities, consisting primarily of receivables from employees. 

Annually, a determination of the amount of the Allowance for Doubtful Accounts will be established for material 

amounts exceeding $30,000. The agency recognizes an Allowance for Doubtful Accounts when it is determined 

that the amounts of nonfederal (public) debts are more likely than not to be totally uncollected. An allowance was 

not established for the agency as of September 30, 2010. 

Note 6 General Property, Plant, and Equipment, Net 

Components of Fixed Assets as of 

September 30, 2010 

(in thousands) 

Useful Life in 

Years 

Cost Accumulated 

Depreciation 

Net Book Value 

Land 10 $ 15 $ - $ 15 

Buildings 10 15 1 14 

General Property, Plant, and Equipment 5–10 3,165 2,780 385 

Vehicles 5 21,785 6,792 14,993 

IT Hardware 3–15 15,035 9,393 5,642 

Leasehold Improvements 

Internal-Use Software 

10 

3–9 

1,042 

32,238 

180 

22,280 

862 

9,958 

 Total $ 73,295 $ 41,426 $ 31,869 

Components of Fixed Assets as of 

September 30, 2009 

(in thousands) 

Useful Life in 

Years Cost Accumulated Depreciation Net Book Value 

General Property, Plant, and Equipment 5–10 $ 3,008 $ 2,716 $ 292 

Vehicles 5 19,657 6,002 13,655 

IT Hardware 3–15 12,789 8,001 4,788 

Leasehold Improvements 10 402 140 262 

Internal-Use Software 3–9 30,036 18,530 11,506 

 Total $ 65,892 $ 35,389 $ 30,503 

As of September 30, 2010, Peace Corps’ fixed assets include internally developed software and those assets that are 

reflected as active in the property management databases. These assets are located at headquarters in Washington, 

D.C., the nine regional offices, and the overseas posts. Values for all assets other than internally developed software 

were obtained from data extracted from the databases. Values for internally developed software were derived from 

the most reliable available data for each system. Peace Corps acquired land and building in Swaziland during FY 

2010. Peace Corps funded renovation of headquarters building which began in FY 2010 is classified as Leasehold 

Improvements. There are no restrictions on the use or convertibility of General Property, Plant and Equipment 

owned by the Peace Corps. 

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Financial Section 

Note 7 Prepaid Volunteer Living Allowances 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Prepaid Volunteer Living Allowances $ 3,907 $ 3,863 

Prepaid Volunteer Living Allowances—Payments of Volunteer living allowances are made prior to the entitlement 

month so the posts can ensure timely payments of the allowances to the Volunteers. These payments are prepositioned so that Volunteers will not incur a financial burden for their living costs. 

Note 8 Other Assets 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Travel Advances to Employees $ 216 $ 48 

Relocation Advances to Employees 13 68 

Prepaid Rent 2,461 2,350 

Prepaid PSC Payroll 145 19 

Total Other Assets $ 2,835 $ 2,485 

Relocation Advances to Employees—Direct-hire employees are provided a relocation advance when appropriate. 

Travel Advances to Employees—Travel advances are provided to employees when appropriate. Advances remain in 

the financial records until they are offset against travel entitlements or collected. 

Note 9 Liabilities Not Covered by Budgetary Resources 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Intragovernmental Liabilities 

Unfunded FECA Liability $ 29,871 $ 27,560 

Liabilities 

Unfunded Annual Leave 8,675 7,237 

Unfunded Employment-Related Liability 9,319 5,629 

Federal Employee and Veterans Benefits 138,157 121,902 

Total Liabilities Not Covered by Budgetary Resources $ 186,022 $ 162,328 

Unfunded FECA Liability—A liability for the direct dollar costs of compensation and medical benefits paid on the 

agency’s behalf by the Department of Labor. Since the agency is dependent on annual appropriation, it will include the amount billed for the direct costs in its budget request two years later. 

Unfunded Annual Leave—A liability for annual leave is accrued as leave is earned and paid when leave is taken or 

when the individual terminates. The balance represents the estimated value of annual leave for U.S.-hired employees earned but not used on September 30, 2010. Payments are charged to the appropriation current at the time 

of payment. The valuation of the accrued annual leave for foreign service national employees and the foreign national PSCs has been estimated for this financial statement. There were 209 foreign service nationals and 2,264 

foreign national PSCs working for the Peace Corps at fiscal year end. Annual leave earned is based on local labor 

law requirements. Annual leave is paid out of current appropriations when taken. 

Unfunded Employment Related Liability—A liability for the estimated severance of foreign national PSCs. Lumpsum payments are generally made to eligible international long-term personal services contractors based on local 

labor law requirements for separation. These payments are made when the individual terminates and are paid out 

of current appropriations. 

Federal Employee and Veterans Benefits—Liability for the actuarial value of future payments for FECA as estimated by the Department of Labor for the agency. 

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Financial Section 

Note 10 Other Liabilities 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Intragovernmental 

Advances from Others $ - $ 2 

Other Liabilities 

Contingent Liability-General Counsel Cases 46 -

Total Other Liabilities $ 46 $ 2 

Advances from Others—The balance of amounts advanced by other federal entities for goods and services to be 

furnished (e.g., money advance for Small Project Assistance grants). 

Contingent Liability—See Note 11. 

Note 11 Commitments and Contingencies 

In the opinion of the management and legal counsel, the agency is liable for contingent liabilities related to administrative proceedings, legal actions, or claims that are probable and measurable in the amount of $46,000 as of 

September 30, 2010. 

Disclosure is required if there is a reasonable possibility that a loss may be incurred. The likelihood of a reasonable 

possibility of a loss related to administrative proceedings, legal actions, or claims is estimated to be $450,000 as of 

September 30, 2010. 

Note 12 Exchange Revenues 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Intragovernmental Earned Revenues $ 3,751 $ 3,195 

Earned Revenues from the Public 249 415 

Total Exchange Revenues $ 4,000 $ 3,610 

Exchange revenues represent revenue from services provided. This includes reimbursable agreements from other 

government agencies such as U.S. Agency for International Development sponsored HIV/AIDS education, prevention, and mitigation activities; and umbrella programs covering environment, health, youth, micro-enterprise, 

and Small Project Assistance technical assistance. 

Note 13 Apportionment Categories of Obligations Incurred: Direct vs. Reimbursable 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Direct Reimbursable Direct Reimbursable 

Category A $ 382,380 $ 3,905 $ 339,280 $ 3,299 

Total Obligations Incurred $ 382,380 $ 3,905 $ 339,280 $ 3,299 

Category A apportionments distribute budgetary resources by fiscal quarters. Category B apportionments typically 

distribute budgetary resources by activities, projects, objects, or a combination of these categories. All obligations 

incurred are Category A.The Peace Corps does not have any Category B or Exempt apportionments. 

Note 14 Undelivered Orders at the End of the Period 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Undelivered Orders – End of Period $ 74,987 $ 61,156 

The undelivered orders are budgetary obligations with and without advances/prepayments placed against federal 

budget authority where no goods or services have been received. 

72 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Section 

Note 15 Fiduciary Activities 

Schedule of Fiduciary Activity as of September 30, 2010 

(in thousands) 

Host Country 

Contributions 

Cash 

Host Country 

Contributions 

In-Kind 

Fiduciary Net Assets, Beginning $ 1,049 $ -

Contributions 1,090 4,684 

Disbursements (1,169) (4,684) 

Increase/(Decrease) in Fiduciary Net Assets (79) -

Fiduciary Net Assets, Ending $ 970 $ -

Schedule of Fiduciary Net Assets as of September 30, 2010 

(in thousands) 

Host Country 

Contributions 

Cash 

Host Country 

Contributions 

In-Kind 

Fiduciary Net Assets 

Cash and Cash Equivalents $ - $ -

Other Assets 975 -

Less: Liabilities 5 -

Total Fiduciary Net Assets $ 970 $ -

Host Country Contributions are provided to Peace Corps by the host government and are accepted under the authority of section 22 USC 2509(a) (4) of the Peace Corps Act. These contributions indicate host country support 

for the Peace Corps and help defray expenses, enabling the Agency to use its budget more effectively. The host 

country retains ownership though the funds are deposited to special foreign currency accounts in the US Treasury. 

In the event the funds are not used, they are returned to the host country. 

The agency received cash and in-kind contributions from host countries. In-kind contributions estimated at $4.7 

million in fair market value were received at posts through the end of September 30, 2010, for services, supplies, 

equipment, and facilities. The September 30, 2010, host country cash balance is $970 thousand. 

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Note 16 Reconciliation of Net Cost to Budget 

FY 2010 Direct Reimbursable 

($ in thousands) 

Total 

Net Obligations Incurred $ (372,236) $ (3,787) $ (376,023)

 Less: Undelivered Orders ( 13,794) (37) (13,831) 

Total Expended Obligation Authority (358,442) (3,750) (362,192) 

Financing Sources Used (358,442) (3,750) (362,192) 

Obligations Not Resourced $ - $ - $ -

Adjustments Reconciling Obligations To Costs Included in Obligations Not in Costs 

 Acquisition of Assets 10,280 - 10,280

 Subtotal 10,280 - 10,280

 Included in Costs Not in Obligations 

 Future Funded Expenses 5,158 - 5,158

 Depreciation, Amortization, and Depletion 7,952 - 7,952

 Employer Contributions to Employee Benefit Programs 2,327 - 2,327

 Changes in Actuarial Liabilities 16,255 - 16,255

 Offsetting Revenues - (3,750) (3,750)

 Imputed Financing 6,563 - 6,563 

Nonfederal Receivables (10) (10)

 Net Change on Dispositions (15) - (15)

 Other Financing Sources (18) - (18)

 Subtotal 38,212 (3,750) 34,462 

Adjusted Expended Obligation Authority ( 386,374) - ( 386,374) 

Statement of Net Costs 386,374 - 386,374

 Unexplained Differences $ - $ - $ -

FY 2009 Direct Reimbursable 

($ in thousands)

Total 

Net Obligations Incurred $ (331,360) $ (3,187) $ (334,547)

 Less: Undelivered Orders ( 8,696) 8 (8,688) 

Total Expended Obligation Authority (322,664) (3,195) (325,859) 

Financing Sources Used (322,739) (3,195) (325,934) 

Obligations Not Resourced 75 - 75 

Adjustments Reconciling Obligations To Costs Included in Obligations Not in Costs 

 Acquisition of Assets 6,880 - 6,880

 Subtotal 6,880 - 6,880

 Included in Costs Not in Obligations 

 Future Funded Expenses (10,358) - (10,358)

 Depreciation, Amortization, and Depletion 7,705 - 7,705

 Employer Contributions to Employee Benefit Programs 2,002 - 2,002

 Changes in Actuarial Liabilities 2,600 - 2,600

 Offsetting Revenues - (3,195) (3,195)

 Imputed Financing 6,043 - 6,043 

Nonfederal Receivables 14 14

 Net Change on Dispositions (166) - (166)

 Other Financing Sources (1) - (1)

 Subtotal 7,839 (3,195) 4,644 

Adjusted Expended Obligation Authority (323,623) - ( 323,623) 

Statement of Net Costs 323,623 - 323,623

 Unexplained Differences $ - $ - $ -

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Financial Section 

Note 17 Imputed Financing 

September 30, 2010 

(in thousands) 

September 30, 2009 

(in thousands) 

Federal Employees Health Benefit Program $ 4,372 $ 3,884 

Federal Employees Group Life Insurance Program 13 13 

Civil Service Retirement System 816 1,842 

Federal Employees Retirement System 1,227 169 

Foreign Service Retirement and Disability System 135 135 

Total Imputed Costs $ 6,563 $ 6,043 

Imputed financing recognizes actual costs of future benefits which include the Federal Employees Health Benefit 

Program, Federal Employees Group Life Insurance Program, and pension benefits that are paid by other federal 

entities. 

Note 18 Disclosure on Contributions to the Peace Corps 

Media Contributions Received –The agency was provided free donated space equivalent to $5.5 million in print, 

radio, and television media through public service announcements in the first 11 months of FY 2010. These donations are not included in the financial statements. 

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Inspector General’s Audit Transmittal Letter 

Office of Inspector General 

To: Aaron S. Williams, Director 

From: Kathy A. Buller, Inspector General 

Date: November 10, 2010 

Subject: Audit of Peace Corps’ Fiscal Year 2010 Financial Statements 

This letter transmits the reports of Clifton Gunderson LLP (CG) on its financial statement 

audit of the Peace Corps’ Fiscal Year (FY) 2010 Financial Statements. As required by the 

Accountability of Tax Dollars Act of 2002, the Peace Corps prepared financial statements in 

accordance with Office of Management and Budget (OMB) Circular No. A-136, Financial 

Reporting Requirements, and subjected them to audit. 

Audit Reports on Financial Statements, Internal Control, and Compliance and Other Matters 

We contracted with Urbach Kahn & Werlin LLP (UKW), an independent certified public 

accounting firm, to audit the Peace Corps’ financial statements as of September 30, 2010 and 

2009. UKW’s practice was acquired by CG by merger on March 22, 2010. The contract 

required that the audit be done in accordance with U.S. generally accepted government 

auditing standards, OMB audit guidance, and the Government Accountability 

Office/President’s Council on Integrity and Efficiency Financial Audit Manual. 

CG’s audit reports for FY 2010 includes: (1) an opinion on the financial statements, (2) a 

report on internal control over financial reporting, and (3) a report on compliance and other 

matters. In the audit of the Peace Corps, CG found: 

The financial statements were fairly presented, in all material respects, in conformity with 

U.S. generally accepted accounting principles, 

There were no material weaknesses in internal control.1 

1 A material weakness is defined as a deficiency, or combination of deficiencies, in internal control, 

such that there is a reasonable possibility that a material misstatement of the entity’s financial 

statements will not be prevented, or detected and corrected on a timely basis. 

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	 CG’s report on internal control identified two significant deficiencies:2 

	 Business processes related to property, plant, and equipment accountability 

need to be improved. Improvements needed are related to recording, tracking, 

and physical verification of certain assets. 

	 Information system security controls need improvement. The auditor cited 

security management, contingency planning, access controls, and 

configuration management as areas needing improvement. 

	 CG found no instances of reportable noncompliance with laws and regulations it tested or 

other matters that are required to be reported under Government Auditing Standards or 

OMB guidance. 

OIG Evaluation of CG’s Audit Performance 

In connection with the contract, we reviewed CG's reports and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit in accordance with 

U.S. generally accepted government auditing standards, was not intended to enable us to 

express, and we do not express, opinions on Peace Corps’ financial statements or conclusions 

about the effectiveness of internal control or conclusions on compliance with laws and 

regulations. CG is responsible for the attached auditor's reports dated November 9, 2010 and 

the conclusions expressed in the reports. However, our review disclosed no instances where 

CG did not comply, in all material respects, with U.S. generally accepted government 

auditing standards. 

We would like to extend our thanks to the Peace Corps staff involved in issuing the financial 

statements within the established OMB milestones. Their professionalism, courtesy, and 

cooperation allowed us to overcome the many challenges associated with performance of the 

audit and our oversight of the audit process. If you or a member of the Peace Corps staff has 

any questions about CG’s audit or our oversight, please contact me or Acting Assistant 

Inspector General for Audit Steven Kaffen, at 202-692-2905. 

Attachments 

cc:	 Carrie Hessler-Radelet, Deputy Director 

Stacy Rhodes, Chief of Staff 

Joseph Hepp, Chief Financial Officer 

Daljit Bains, Chief Compliance Officer 

2 A significant deficiency is defined as a deficiency, or a combination of deficiencies, in internal 

control that is less severe than a material weakness, yet important enough to merit attention by those 

charged with governance. 

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Auditor’s Report 

Independent Auditor’s Report 

To the Director and Inspector General,

 Peace Corps 

We have audited the accompanying Balance Sheet of Peace Corps as of September 30, 2010,

and the related statements of Net Cost, Changes in Net Position and Budgetary Resources for

the year then ended. These financial statements are the responsibility of Peace Corps’

management. Our responsibility is to express an opinion on these financial statements based on

our audit. The financial statements of Peace Corps as of September 30, 2009 were audited by

Urbach Kahn & Werlin LLP, which practice was acquired by Clifton Gunderson LLP by merger

on March 22, 2010. Urbach Kahn & Werlin LLP’s report dated November 12, 2009 expressed

an unqualified opinion on those financial statements. 

We conducted our audit in accordance with auditing standards generally accepted in the United

States of America; the standards applicable to financial audits contained in Government 

Auditing Standards issued by the Comptroller General of the United States; and applicable

provisions of Office of Management and Budget Bulletin No. 07-04, Audit Requirements for 

Federal Financial Statements, as amended. Those standards require that we plan and perform

the audit to obtain reasonable assurance about whether the financial statements are free of 

material misstatement. An audit includes examining, on a test basis, evidence supporting the

amounts and disclosures in the financial statements. An audit also includes assessing the 

accounting principles used and significant estimates made by management, as well as 

evaluating the overall financial statement presentation. We believe that our audit provides a 

reasonable basis for our opinion. 

In our opinion, the 2010 financial statements referred to above present fairly, in all material

respects, the financial position of Peace Corps as of September 30, 2010, and its net costs,

changes in net position, and budgetary resources for the year then ended in conformity with 

accounting principles generally accepted in the United States of America. 

In accordance with Government Auditing Standards, we have also issued our reports dated 

November 9, 2010, on our consideration of Peace Corps’ internal control over financial reporting 

and on our tests of its compliance with certain provisions of laws and regulations and other

matters. The purpose of those reports is to describe the scope of our testing of internal control

over financial reporting and compliance and the results of that testing, not to provide an opinion

on internal control over financial reporting or compliance. Those reports are an integral part of 

our audit performed in accordance with Government Auditing Standards and should be 

considered in assessing the results of our audit. 

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The Management’s Discussion and Analysis (MD&A) section is not a required part of the

financial statements, but is supplementary information required by accounting principles

generally accepted in the United States of America. We have applied certain limited procedures,

which consisted principally of inquiries of management regarding the methods of measurement

and presentation of the required supplementary information. However, we did not audit the 

information and express no opinion on it. 

The Message from the Director, Performance Section, Other Accompanying Information and

Appendices listed in the Table of Contents are presented for additional analysis and are not a

required part of the financial statements. Such information has not been subjected to the

auditing procedures applied in the audit of the financial statements and, accordingly, we express

no opinion on them. 

Arlington, Virginia

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Independent Auditor’s Report on Internal Control Over Financial Reporting 

To the Director and Inspector General,

 Peace Corps 

We have audited the financial statements of the Peace Corps as of and for the year ended

September 30, 2010, and have issued our report thereon dated November 9, 2010. We 

conducted our audit in accordance with auditing standards generally accepted in the United 

States of America; the standards applicable to financial audits contained in Government 

Auditing Standards, issued by the Comptroller General of the United States; and, Office of

Management and Budget (OMB) Bulletin 07-04, Audit Requirements for Federal Financial 

Statements, as amended. 

In planning and performing our audit, we considered Peace Corps' internal control over financial 

reporting by obtaining an understanding of the design effectiveness of internal controls,

determined whether these controls had been placed in operation, assessed control risk, and

performed tests of controls as a basis for designing our auditing procedures for the purpose of

expressing our opinion on the financial statements, but not for the purpose of expressing an

opinion on the effectiveness of Peace Corps’ internal control over financial reporting.

Accordingly, we do not express an opinion on the effectiveness of Peace Corps’ internal control

over financial reporting. 

Our consideration of internal control over financial reporting was for the limited purpose

described in the preceding paragraph and would not necessarily identify all deficiencies in

internal control over financial reporting that might be deficiencies, significant deficiencies or

material weaknesses. However, as discussed below, we identified certain deficiencies in 

internal control over financial reporting that we consider to be significant deficiencies. 

A deficiency in internal control exists when the design or operation of a control does not allow

management or employees, in the normal course of performing their assigned functions, to

prevent, or detect and correct misstatements on a timely basis. A material weakness is a 

deficiency, or a combination of deficiencies, in internal control such that there is a reasonable 

possibility that a material misstatement of the entity's financial statements will not be prevented,

or detected and corrected on a timely basis. We believe that none of the significant deficiencies

described below is a material weakness. 

A significant deficiency is a deficiency or a combination of deficiencies in internal control that is

less severe than a material weakness, yet important enough to merit attention by those charged

with governance. We consider the deficiencies described below to be significant deficiencies. 

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Significant Deficiencies 

These control deficiencies, detailed on the following pages, are summarized as follows: 

1. Controls over property plant and equipment need improvement 

2. Information systems security controls need improvement 

In addition to the significant deficiencies described above, we noted certain matters involving 

internal control and its operation that we will report to the management of Peace Corps in a

separate letter. 

This report is intended solely for the information and use of the management of Peace Corps,

the Peace Corps Office of Inspector General, GAO, OMB and Congress, and is not intended to 

be and should not be used by anyone other than these specified parties. 

Arlington, Virginia

November 9, 2010 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Section 

SIGNIFICANT DEFICIENCY 1 

CONTROLS OVER PROPERTY PLANT AND EQUIPMENT NEED IMPROVEMENT 

Throughout Fiscal Year 2010 (FY 2010), OCIO worked to improve asset receiving and reporting 

procedures; however, our audit procedures showed that OCIO continued to experience

difficulties in properly reporting and tracking capitalized IT equipment. We found several IT 

equipment assets that we observed could not be located in the asset listing. Peace Corps

determined that these assets may not have been capitalized and therefore, would not be on the 

listing. 

We found nine assets out of ten tested were not tagged with a Peace Corps property tag 

number. There were also instances where some assets had two tag numbers. We were 

informed that sometimes the vendor sends the assets already tagged with a Peace Corps tag,

but that the Office of Management retags the pre-tagged asset thereby creating two tags. 

We also found that the asset listing contained numerous assets without identification numbers. 

Peace Corps’ Odyssey PCA FA Asset Additions Report provided to the auditors is not 

accurately capturing all of the asset additions that occurred during the fiscal year resulting in

management’s inability to provide an accurate additions listing. 

Recommendations 

We recommend the Peace Corps Director ensure that: 

1a. Current policies designed to ensure complete and accurate asset listing are enforced.

Procedures should be developed to ensure assets are properly tagged upon receipt and that

OCFO is provided with complete and timely data to record additions. 

1b. Roles and responsibilities outlined on Peace Corps Standard Operating Procedures (SOP)

are carried out by posts and HQ for property accounting and financial reporting personnel

that perform accuracy, verification, and completeness checks on the capitalized property

listings. 

1c. Procedures are developed to ensure that additions and disposals are recorded accurately

and timely. OCIO should provide OCFO with timely disposal data to ensure the property

balances are not overstated. 

1d. The financial management system is providing proper output for designated auditor reports

in accordance with Federal Agency regulations. 

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SIGNIFICANT DEFICIENCY 2 

INFORMATION SYSTEM SECURITY CONTROLS NEED IMPROVEMENT 

Peace Corps made improvements to its information systems control environment during FY

2010. However, we found that certain internal control weaknesses related to the Financial

Management System and Peace Corps’ overall Information Technology (IT) environment 

continued to exist at September 30, 2010. Our assessment of the general and application 

controls of Peace Corps’ key IT infrastructure and financial systems identified the following 

conditions. 

Control Weaknesses 

Security Management 

	 As reported under the FY 2010 Federal Information Security Management Act (FISMA)

assessment, the Global Infrastructure Risk Assessment has not been approved or

include critical regions including; Europe, Mediterranean, and Asia Region General

Support System or the Africa Region General Support System. Without current system

risk assessments, it is difficult to determine the probability of occurrence, the resulting 

impact, and the additional safeguards needed to mitigate the impact of potential risks to

the systems environment. In addition, lack of reviews and updates to existing risk 

assessments may expose the agency to new unidentified risks through the system

lifecycle. 

	 As reported under the FY 2010 FISMA assessment, Peace Corps was operating one

system without a valid Certification and Accreditation (C&A) or Authority to Operate

(ATO) during a majority of the fiscal year. Specifically, the Global General Support

Systems which supports Peace Corps financial management systems was not operating 

under an approved C&A or ATO during 364 days during fiscal year 2010. Without

completing the certification and accreditation process in a timely manner, senior level

agency officials will not have taken the appropriate steps to mitigate or accept risk for

their information systems as required by OMB. In addition, without a complete and timely

certification and accreditation package (i.e. security plans, risk assessments,

contingency plans) proper security may not be administered over the data within the

agencies information systems. However, the overall pace of this progress has been slow

in coming into full compliance with the FISMA regarding achievement of final 

certifications and accreditations for 100 percent of its major information systems. 

	 As reported under the FY 2010 FISMA assessment, Peace Corps Information 

Technology policies have not been approved or finalized to date. Specifically, in regards

to the Peace Corps Manual Section (MS) 542: Information Technology Security Policies 

although revised to be consistent with current OMB and National Institute of Standards

and Technology (NIST) standards, the revised MS 542 is currently being reviewed by

General Counsel and had not been approved and published by Peace Corps 

Management. Additionally, it was noted that no policy has been formalized which 

dictates controls over the monitoring and oversight of external systems used by the

agency. Clearly documented and published policies and procedures are the first step

towards ensuring the security of information systems. Without a published policy 

surrounding information security management, Peace Corps cannot ensure that its 

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personnel understand or know how to perform their information security responsibilities

in accordance with FISMA. 

	 During FY 2010, Peace Corps management modified the Enterprise System Inventory

reduced the number of Major Applications and General Support Systems to eight. Seven 

of the eight systems currently have System Security Plans. However, the Global 

Infrastructure System Security Plan excludes the Europe, Mediterranean, and Asia 

Region as well as the Africa Region. The Security Plan also does not contain the most

up to date information. For example, the plans states that no privacy impact assessment

had been identified for the information system; however, one is posted to the Peace

Corps website. Without complete and current system security plans, security 

responsibilities and controls are not appropriately documented, disseminated,

implemented, or monitored, therefore, the Peace Corps information systems may be

more susceptible to improper access, use, or loss of sensitive information. 

Contingency Planning 

During the FY 2010 FISMA assessment, we noted the Peace Corps Business Impact Analysis

had not been updated by the agency to ensure identified impacts reflect current agency

continuity of operations planning and are accurately incorporated into disaster recovery planning 

for the agency’s current system environment. 

Peace Corps management did make improvements related to contingency planning during FY

2010; however, the lack of an up to date agency Business Impact Analysis creates a deficiency

in the contingency planning process for information systems. A deficiency in this process means

that key impacts or threats could be overlooked leading to the ineffective or delayed recovery of

agency systems. 

Access Controls 

	 Peace Corps network accounts are not being deactivated in a timely manner. We noted

the following conditions: multiple accounts were enabled with passwords that have not

been reset in over ninety days, accounts remained active that had never been logged

into, accounts were enabled without having a password set and accounts were enabled 

that did not require a password. Since accounts are not disabled after a defined period

of inactivity, accounts may be left active increasing the risk associated with unauthorized 

access to the system. 

	 Peace Corps was unable to provide documentation that audit logs for the Domestic

portion of the Global Infrastructure System are reviewed for suspicious/unusual activity.

There are no procedures for reviewing the audit logs of the Global Infrastructure System 

servers within a specific schedule, and although operations personnel plan on

implementing a tool to capture audit logs and place them on a server for contractor

review; that had not yet occurred as of the date of our testing. As a result, vulnerabilities

could exist that could be left unchecked due to the lack of monitoring or other detective 

controls. Regular review of audit logs reduces the risk of actions that could lead to data

loss not being detected and corrected. 

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Configuration Management 

	 As reported under the FY 2010 FISMA assessment, Peace Corps had not implemented

all of the Federal Desktop Core Configuration (FDCC) requirements as required by OMB

Memorandum M-07-11, Implementation of Commonly Accepted Security Configurations 

for Windows Operating Systems and OMB Memorandum M-08-22, Guidance on the 

Federal Desktop Core Configurations (FDCC). In addition, workstations were lacking 

centrally managed controls such as session locking. Without being FDCC compliant 

agencies are at risk of increased disruption, slower network capabilities and 

unauthorized access. For example, Peace Corps settings for idle time required before

suspending session had not been set. Therefore, end users may alter desktop settings

such as the screen saver and the requirement for entering a password upon return to a

computer. Small changes such as these increase the potential for unauthorized access

to the sensitive information on Peace Corps computers. 

	 As reported under the FY 2010 FISMA assessment, mandatory security settings and 

baseline configurations are not adequately applied for Oracle, UNIX Servers and 

Microsoft Servers. Specifically, Microsoft Servers and Oracle instances do not have 

mandatory security settings and related baseline configurations are not currently 

documented. In addition, UNIX servers are not configured in accordance with the 

mandatory security setting checklist applied by the Center for Internet Security (CIS)

benchmarking tool, based upon a review of June 2010 CIS reporting results. The lack of

mandatory security settings and baseline configurations may increase the risk of security

vulnerabilities that expose systems to potential unauthorized access, data loss, data

manipulation, and system unavailability. 

As required by OMB Circular A-130, Management of Federal Information Resources, Appendix

III security accreditation provides a quality control and challenges managers and technical staff

at all levels to implement the most effective security controls possible in an information system. 

NIST Special Publication (SP) 800-37, Guide for the Security Certification and Accreditation of 

Federal Information Systems, states “Security certification is a comprehensive assessment of

the management, operational, and technical security controls in an information system, made in 

support of security accreditation, to determine the extent to which the controls are implemented

correctly, operating as intended, and producing the desired outcome with respect to meeting the 

security requirements for the system. The results of a security certification are used to reassess

the risks and update the system security plan, thus providing the factual basis for an authorizing

official to render a security accreditation decision.” 

NIST SP 800-53 Revision 2, Recommended Security Controls for Federal Information Systems 

control RA-3, states the following regarding risk assessments, “The organization conducts

assessments of the risk and magnitude of harm that could result from the unauthorized access,

use, disclosure, disruption, modification, or destruction of information and information systems

that support the operations and assets of the agency (including information and information

systems managed/operated by external parties).” 

NIST SP 800-12, An Introduction to Computer Security: the NIST Handbook states: “A 

management official, normally the head of the organization or the senior administration official,

issues program policy to establish (or restructure) the organization's computer security program

and its basic structure. This high-level policy defines the purpose of the program and its scope 

within the organization; assigns responsibilities (to the computer security organization) for direct 

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Financial Section 

program implementation, as well as other responsibilities to related offices (such as the 

Information Resources Management [IRM] organization); and addresses compliance issues.

Program policy sets organizational strategic directions for security and assigns resources for its

implementation.” 

The Federal Information Security Management Act of 2002 states: “Each agency shall develop,

document, and implement an agency-wide information security program, approved by the 

Director under section 3543(a)(5), to provide information security for the information and 

information systems that support the operations and assets of the agency, including those

provided or managed by another agency, contractor, or other source.” 

NIST SP 800-53, Revision 2 Recommended Security Controls for Federal Information Systems 

Control PL-2 states: “The organization develops and implements a security plan for the 

information system that provides an overview of the security requirements for the system and a

description of the security controls in place or planned for meeting those requirements.

Designated officials within the organization review and approve the plan.” 

NIST SP 800-18, Guide for Developing Security Plans for Federal Information Systems states: 

“The objective of system security planning is to improve protection of information system

resources. All federal systems have some level of sensitivity and require protection as part of

good management practice. The protection of a system must be documented in a system

security plan. 

NIST SP 800-53 Revision 2, Security Control CM-5, states the following regarding access

restrictions for change, “The organization: (i) approves individual access privileges and enforces

physical and logical access restrictions associated with changes to the information system; and 

(ii) generates, retains, and reviews records reflecting all such changes.” 

NIST SP 800-53 Revision 2, Security Control AC-2 – Account Management, states: “The 

organization manages information system accounts, including establishing, activating,

modifying, reviewing, disabling, and removing accounts. The organization reviews information

system accounts at least annually.” 

NIST SP 800-53 Revision 2, Recommended Security Controls for Federal Information Systems

control AU-6, states the following regarding Audit and Accountability, “The organization regularly

reviews/analyzes information system audit records for indications of inappropriate or unusual

activity, investigates suspicious activity or suspected violations, report findings to appropriate

officials, and takes necessary actions.” 

NIST SP 800-53 Revision 2, Recommended Security Controls for Federal Information Systems 

control CM-2, states the following regarding baseline configurations, “The organization 

develops, documents, and maintains a current baseline configuration of the information system.” 

NIST SP 800-53 Revision 2, Recommended Security Controls for Federal Information Systems 

control CM-6, states the following regarding configuration settings, “The organization: (i)

establishes mandatory configuration settings for information technology products employed

within the information system; (ii) configures the security settings of information technology

products to the most restrictive mode consistent with operational requirements; (iii) documents

the configuration settings; and (iv) enforces the configuration settings in all components of the

information system.” 

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Financial Section 

Recommendations 

We recommend the Peace Corps Director ensure that: 

2a. The risk assessment for the Global Infrastructure is revised to incorporate critical regions

reviewed, approved and updated periodically. 

2b. Full certification and accreditation efforts are completed for all Peace Corps information 

systems in a timely manner in accordance with Peace Corps policy, NIST Special 

Publication 800-37 guidance, and OMB Circular A-130. 

2c. Manual Section 542: Information Technology Security Policies is complete, updated and 

approved. 

2d. The Business Impact Analysis is reevaluated and updated to 1) accurately reflect the current

Peace Corps continuity of operations planning; 2) support disaster recovery planning and 

testing, and 3) reflect the agency’s current environment. 

2e. Procedures are developed and implemented to periodically audit network user accounts to

(a) verify that user accounts are still currently being used, (b) verify that there are 

reasonable justifications for any user accounts that are not being accessed, and (c) disable 

any user accounts that have not been accessed without reasonable and documented 

justification. 

2f.	 Review audit logs on the domestic portion of the Global Infrastructure Operating System

periodically for suspicious activity. 

2g. Implement FDCC compliant group policies and ensure that all workstations are compliant

with the FDCC requirement checklists. 

2h. Management maintains mandatory security settings and baseline configurations for Oracle

instances, UNIX Servers, and Microsoft Servers. 

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Financial Section 

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Independent Auditor’s Report on Compliance and Other Matters 

To the Director and Inspector General,

 Peace Corps 

We have audited the financial statements of Peace Corps as of and for the year ended

September 30, 2010, and have issued our report thereon dated November 9, 2010. We 

conducted our audit in accordance with auditing standards generally accepted in the United 

States of America; the standards applicable to financial audits contained in Government 

Auditing Standards, issued by the Comptroller General of the United States; and, Office of

Management and Budget (OMB) Bulletin 07-04, Audit Requirements for Federal Financial 

Statements, as amended. 

The management of Peace Corps is responsible for complying with laws and regulations

applicable to Peace Corps. As part of obtaining reasonable assurance about whether Peace

Corps’ financial statements are free of material misstatements, we performed tests of Peace

Corps’ compliance with certain provisions of laws and regulations, non-compliance with which

could have a direct and material effect on the determination of financial statement amounts, and

certain other laws and regulations specified in OMB Bulletin 07-04, as amended. We limited our

tests of compliance to those provisions and we did not test compliance with all laws and

regulations applicable to Peace Corps. Providing an opinion on compliance with certain 

provisions of laws and regulations was not an objective of our audit, and, accordingly, we do not

express such an opinion. 

The results of our tests of compliance with laws and regulations described in the preceding 

paragraph disclosed no instances of reportable noncompliance or other matters that are 

required to be reported under Government Auditing Standards or OMB Bulletin 07-04, as 

amended. 

This report is intended solely for the information and use of the management of Peace Corps,

the Peace Corps Office of Inspector General, GAO, OMB and Congress, and is not intended to 

be and should not be used by anyone other than these specified parties. 

Arlington, Virginia

November 9, 2010 

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oTHer ACCoMPANYING INForMATIoN 

Health Volunteer helps her 

community members sew an AIDS 

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Inspector General’s Statement on the Peace Corps’ Management and 

Performance Challenges 

Office of Inspector General 

TO: Aaron S. Williams, Peace Corps Director 

FROM: Kathy A. Buller, Inspector General 

SUBJECT: Inspector General’s Statement on the Peace Corps’ Management and 

Performance Challenges 

DATE: October 12, 2010 

In accordance with the Reports Consolidation Act of 2000, we are submitting what we have 

determined to be the most significant management and performance challenges facing the Peace 

Corps. Our challenges, discussed in the attachment to this memo, are to be included in the 

Agency’s Performance and Accountability Report for fiscal year 2010. In our fiscal year 2009 

challenges we indentified five areas, which in our opinion were the most serious issues facing 

management. We believe those same areas continue to present significant management and 

performance challenges at the Peace Corps. In addition, this year we have identified three new 

management and performance challenges. The challenge areas are listed below: 

Fiscal Year 2009 Challenges 

 Capacity of Peace Corps Business Operations to Support Growth and Expansion 

Information Technology Management 

 Acquisitions and Contract Management 

 Property Management 

 Protection of Personally Identifiable Information 

New Challenges 

Capacity of Overseas Posts to Support Growth and Expansion 

 Remediation of Audit Findings and Recommendations 

Accessibility of Agency Data 

These challenges illustrate the most significant areas we believe need improvement for Peace 

Corps to effectively keep pace with projected growth and minimize the potential for fraud, waste, 

and abuse occurring in its operations. By addressing the issues related to our challenge areas the 

agency could potentially achieve operational efficiencies and improve mission effectiveness. 

Attachment 

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ATTACHMENT 

FY 2009 Challenges 

Challenge Capacity of Peace Corps Business Operations to Support Growth and Expansion 

Last year we reported that as a result of the response to the President’s “call to service,” and as 

more developing nations request Peace Corps programs, it is anticipated the agency will 

experience significant growth. According to the Peace Corps Director’s Integrated Planning and 

Budget System (IPBS) guidance for FYs 2011-2013, Peace Corps’ goal is to have 10,000 

Volunteers on board by the end of FY 2011, 12,000 by the end of FY 2012, and 14,000 by the 

end of FY 2013. Such growth will necessitate increased funding levels. Efficient and effective 

management of the resulting rapid growth and larger budgets will continue to present challenges 

for agency management. 

In our opinion, without enhancements to its business processes the agency will have difficulty 

continuing to provide the current level of Volunteer support based on projected growth. 

Significant increases in the number of Volunteers will have a major impact across overall 

operations and cause considerable stress in service delivery capabilities of several key business 

operations. Operations most impacted include: 

Volunteer Recruitment & Selection 

Volunteer Support Services 

Financial Management 

Information Technology 

Acquisitions & Contracting 

Safety & Security 

Human Resources 

Administrative Services 

As a result, we believe it remains a management challenge for the Peace Corps to ensure that 

business operations can respond with an effective level of support in an era of increased 

volunteerism and resulting rapid expansion of agency programs and/or operations around the 

world. 

Challenge Information Technology Management 

In last year’s Challenges, we indicated that the agency had not established an adequate 

information technology (IT) strategy or an effective IT governance process as required by the 

Clinger-Cohen Act of 1996 and OMB Circular A-130. Also, overall budgeting for IT resources 

was not effective and had placed the agency at risk. The most significant risks have been, and 

continue to be, associated with ensuring that: limited resources will be put to use where most 

needed; funds spent on contracts consistently meet requirements; and the IT infrastructure 

effectively supports the Peace Corps mission. Achieving full compliance with federal laws and 

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regulations that apply to managing the Peace Corps IT infrastructure and improving the IT 

budget process are critical management challenges. 

Management is making progress in strengthening the Peace Corps’ IT architecture and security 

management. We noted that seven of eight systems had been issued an authorization to operate 

by the end of this fiscal year. However, the overall pace of this progress has been slow in coming 

into full compliance with the Federal Information Security Management Act (FISMA) regarding 

adequate contingency planning and achievement of final certifications and accreditations for 100 

percent of its major information systems. Further, there are a number of open IT-related 

recommendations that were made during prior FISMA reviews and financial statement audits 

that have not been fully remediated, some dating back to audits performed in FYs 2003-2006. 

Challenge Acquisitions and Contract Management 

Last year we included a challenge area on acquisitions and contract management. Operations 

relating to Peace Corps’ acquisitions and contracting are worldwide in scope adding 

complexities, not common at most federal agencies. In FY 2010 the agency expended nearly 

$84.3 million for goods and services, or approximately 21 percent of the Peace Corps budget. 

This figure includes expenditures of about $53.4 million for personal services contracts and 

nearly $31 million for other contracts. We mentioned in the FY 2009 challenge that White House 

initiatives implemented through OMB have directed federal agencies to undertake a number of 

initiatives relating to strengthening acquisitions and contract management, including reducing 

baseline contract expenditures and achieving improvements in agency contracting processes, 

such as reducing the use of high risk contracts. OMB has continued to emphasize that agencies 

strive for making their procurement processes more efficient and cost effective. 

Although progress is being made to improve the agency’s overall contracting processes, we 

believe some of the same problems are impacting operations. For example, resourcing issues 

continue to impact the ability to quickly implement plans for strengthening contract surveillance; 

compliance with applicable laws and regulations; and customer support services. Additional 

personnel resources have been authorized to assist with the agency’s management of the 

acquisition process. However, three senior managers assigned to the Peace Corps’ acquisition 

workforce left within the last 12 months, including both the chief and deputy acquisition officers. 

The requirements imposed upon the Peace Corps’ acquisition organization continue to present 

challenges for already strained resources. 

Challenge Property Management 

Accountability over Peace Corps property continues to present challenges for management. The 

FY 2010 (Third Quarter) Balance Sheet indicates the agency’s general property, plant, and 

equipment (PP&E) has a net book value of about $29.6 million. Peace Corps’ general PP&E 

includes primarily vehicles, office furniture, computer equipment and software. Property 

management involves organizational activities related to acquiring, tracking, controlling, and 

disposing these items. In last year’s Challenges, we reported that audits and investigations 

performed had disclosed that not all Peace Corps property is adequately safeguarded or disposed 

in accordance with applicable Federal and Peace Corps requirements. Although we did find that 

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certain policies regarding disposal of fleet vehicles have been strengthened, our work in this area 

during FY 2010 concluded that issues with overall property accountability have continued to 

impact operations. 

We noted during the last 12 months there were significant problems with accountability of 

certain assets, managing excess property, and recording and tracking. For example, we found at 

some Peace Corps posts that records were not being updated to reflect all property that had been 

disposed and/or added to inventory and periodic required physical counts were not being 

conducted. Our external auditors reported that the agency had not taken the necessary corrective 

actions that were recommended last year to ensure accurate tracking of assigned laptop 

computers at headquarters. As a result, there were still problems determining the location of 

these assets. Other examples of deficient property management includes failing to dispose of 

property identified as excess to needs in a timely manner and inadequate physical control. 

Ineffective property management unnecessarily exposes the agency to risks associated with 

fraud, waste, and abuse and drives operating costs up. Agency management has informed us that 

a new property accountability software solution is projected to be fully implemented in the 

Fourth Quarter of FY 2011. However, the capabilities for improving accountability will not be 

known until the new system has been fielded and an assessment made as to its effectiveness. As 

a result, improving overall property management and strengthening internal control related to 

property accountability continues to be a management challenge. 

Challenge Protection of Personally Identifiable Information 

In FY 2009 we identified a challenge area in the agency’s management and internal control 

regarding the protection of Personally Identifiable Information. The Peace Corps routinely 

receives, processes, and maintains significant amounts of Personally Identifiable Information 

(PII). PII includes information that can be used to distinguish or trace an individual’s identity, 

such as name, Social Security Number, or biometric records. Such information can be used to 

link to other data such as bank accounts and other financial or personal information that can 

assist perpetrators in committing crimes associated with identity theft. During FY 2009 a number 

of cases of PII security breaches involving social security numbers, medical data, and other PII 

data had been brought to our investigators’ attention. This trend has continued to be a problem 

this fiscal year. In both this fiscal year and last, investigations into these security lapses disclosed 

internal control weaknesses and failure to follow federal laws and regulations and Peace Corps 

policy on protecting PII. As a result, we believe it continues to be a challenge for management to 

improve its system for internal control over PII and ensure Peace Corps personnel consistently 

comply with applicable federal and agency guidance. 

New Challenges FY 2010 

Challenge Capacity of Overseas Posts to Support Growth and Expansion 

The Peace Corps is experiencing significant growth as it strives to achieve the President’s 

initiative to increase the number of Volunteers by about 18 percent at the end of FY 2012 and 

approximately 38 percent by the end of FY 2016. The agency has proposed even more 

aggressive growth in the Director’s IPBS guidance for FYs 2011-2013 increasing Volunteer 

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strength by about 75 percent from its current level by the end of FY 2013. Programmatic and 

administrative support operations face difficult challenges ahead to ensure the growth process is 

efficient and effective. Further, the budget is anticipated to increase significantly to 

accommodate the continued growth. The Peace Corps must ensure headquarters functions can 

provide effective oversight and support to overseas posts while developing streamlined processes 

to ensure “intelligent” growth and not just an increase in the number of staff. 

Peace Corps management and overseas posts face additional challenges as they prepare to 

support a significantly increased numbers of Volunteers. Peace Corps must ensure that posts’ 

staffing, site development, Volunteer training and support, and related infrastructure are 

sufficiently robust to support the agency’s expansion into new countries and establishment of 

much larger programs in some existing countries. 

There are unique challenges faced by start-up and established posts, which have been designated 

for high growth. Start-up operations require a level of expertise for U.S. direct hire (USDH) and 

other key staff positions that is more advanced than what is normally required for to staff 

ongoing post operations. For example, start-up USDH staff is called upon to establish 

relationships with key U.S. mission and host country officials; recruit and train local staff; 

identify appropriate office and residential space; negotiate and consummate leases; ensure an 

effective IT/communications infrastructure; and create and develop pre-service and other 

trainings for new Volunteers. Established posts also need to effectively plan, manage, and recruit 

experienced managers to fill key positions in anticipation of growth. Although such challenges 

are known, we found significantly deficient conditions at recently re-opened and established, 

high-growth designated posts we visited this year. These conditions related to ineffective post 

management, weak overall internal control structure, and failure to comply with applicable 

federal laws, regulations, and Peace Corps policy. 

In FY 2010 the agency conducted a self assessment of current operations. A final report entitled 

“The Peace Corps: A Comprehensive Agency Assessment” was issued in June 2010. The 

Assessment concluded that existing post planning and staffing required strengthening. It asserted 

that “there is a need for agreement on what constitutes the basic level of support that Volunteers 

can expect when serving in the Peace Corps . . .” and called for an analysis of post staffing 

patterns and support requirements. 

The Assessment identified critical program-related responsibilities of the agency. For example, 

posts are responsible for “ensuring every Volunteer has a meaningful job and is properly trained 

to effectively carry it out,” and, in this regard, are required to identify Volunteer site placements 

where the Volunteers’ “skills and expertise are needed, wanted and will allow them to make a 

difference.” Moreover, “the Peace Corps must establish a new level of commitment to ensuring 

Volunteers will receive world-class language, cultural and technical training in preparation for 

the meaningful work that awaits them.” The ability of the agency to fulfill these critical 

responsibilities is directly tied to agency management of human and budget resources. 

The Assessment contains 63 recommendations; the implementation is just beginning. It will be a 

management challenge to ensure the infrastructure requirements to adequately support growth 

are in place prior to significantly increasing the number of Volunteers. Anticipating and 

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effectively planning and managing post staffing and infrastructure requirements is a significant 

challenge to the agency as it continues to expand. 

Challenge Timely and Effective Remediation of OIG Findings and Recommendations 

Based on the projected growth of Volunteers in the field it is crucial that Peace Corps’ business 

processes be capable of effectively meeting the challenges brought on through significant 

expansion. Over the years, in particular last year, we reviewed some of the agency’s key 

headquarters’ level business processes and made a number of recommendations that would 

improve efficiencies and effectiveness associated with delivering services to Volunteers in the 

field; serve to strengthen internal control; and ensure compliance with applicable Federal laws, 

regulations, and Peace Corps policy. However, although management concurred with most of the 

associated findings and recommendations, it has not been timely in taking corrective actions 

necessary to remediate the deficiencies noted in the related reports. Management has taken 

sufficient corrective actions to enable us to close just six of 68 recommendations made in FY 

2010 audit reports that addressed deficiencies in key agency business processes. 

During FY 2010 we issued three audit reports that address significant issues with Peace Corps 

business operations. For example, in a report issued in January we found that the agency’s Office 

of the Chief Information Officer did not ensure its budget resources were adequate or expended 

efficiently; failed to provide sufficient guidance to the Office of the Chief Financial Officer 

regarding requests for additional funds; and did not comply with important provisions included 

in the Clinger-Cohen Act and OMB Circular A-130. Another audit report issued in March 

discussed issues regarding improving the overall contracting process through recommendations 

aimed at establishing new policy; improving customer service; and ensuring full compliance with 

the Federal Acquisition Regulation and other applicable laws, regulations, and Peace Corps 

policy. We also performed an audit of Peace Corps’ program on safety and security of the more 

than 8,000 Volunteers who serve around the world. We found, among other things, that the 

agency’s program for protecting Volunteers in the field lacked a clear management structure, no 

single office accepted comprehensive ownership of the safety and security program, and 

management did not ensure that Peace Corps overseas posts fully implemented required policies 

related to its security program. 

We have recently issued a preliminary report on our follow-up evaluation of the Volunteer 

Delivery System (VDS). This system is used by the agency to recruit, select, and place 

Volunteers in the field. In 2003, OIG issued an evaluation report on the VDS and concluded that 

the system had significant weaknesses, particularly in the areas of leadership and organizational 

change; information flow; information technology; medical screening; customer service; and 

staffing and staff training. Our follow-up reviewed actions taken by management to address the 

recommendations made in the previous report. The evaluation results show that the Peace Corps 

did not fully address the recommendations made in the 2003 report. At the time the report was 

issued, the agency concurred with all 24 recommendations and described specific plans for 

remediation of the findings. However, based on our follow-up effort we have determined that 

many of the corrective actions agreed to by management were either not initiated or were not 

fully carried out. 

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In 2008, OIG also issued a program evaluation report on the Peace Corps’ Medical Clearance 

System (MCS), which is one component of the VDS. The MCS is the agency’s mechanism for 

medically screening applicants to ensure that Peace Corps posts receive healthy Volunteers who 

can serve overseas for 27 months. The 2008 medical clearance evaluation report contained 55 

recommendations, seven of which targeted the same medical screening weaknesses identified in 

the 2003 OIG VDS evaluation report. To date we have not received sufficient evidence that 

appropriate corrective actions have been taken to fully remediate deficient conditions associated 

with nine of the 55 recommendations. 

Management filled the position of the chief compliance officer in August, 2010. This position 

had either been vacant or occupied by a staff member serving in a temporary, part-time capacity 

since January 2009. As a result, corrective actions to implement OIG audit and evaluation 

recommendations were hampered and their remediation did not receive sufficient priority by 

management. Many of the significant deficiencies noted have remained in an open status for six 

months or more. The new chief compliance officer has recently begun a comprehensive effort of 

reviewing and following up on the significant open recommendation backlog. Timely 

remediation of recommendations is dependent on top management’s full attention and support in 

correcting known deficient conditions, as well as having a proactive agency compliance program 

in place. 

Challenge Accessibility of Useful and Accurate Data Related to Peace Corps Operations 

Peace Corps has difficulty maintaining and accessing certain types of data regarding selected 

operations. While conducting audits and evaluations over the past 12 months, OIG encountered 

problems obtaining significant data for key business processes. In particular, data related to the 

following operational areas was generally not readily available: 

	 Summary data related to employee retention and turnover 

	 Cost and cumulative impact of Volunteer medical accommodations 

	 Acceptance rate for Volunteer applicants 

	 Number of Volunteer applicants who do not fully match the skills requested by host 

countries 

We found that some of the databases and information technology systems used by the agency do 

not effectively capture and distribute useful data to decision makers. Data is often not centralized 

and accessible to the staff that needs the information to perform their jobs. For example, the 

agency does not have timely access to employee turnover and tenure data and could not produce 

the data needed to determine the average length of time it takes to fill vacant positions. Gathering 

such data often requires access to numerous systems and databases and staff must manually 

assemble it from multiple sources to develop needed reports and information. This manual 

process is not efficient and can lead to errors unless staff undertakes time-consuming data 

validation efforts. Furthermore, without timely access to relevant data, the agency cannot easily 

obtain the data necessary for making informed management decisions and assessing whether the 

agency is meeting its performance goals. 

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Agency Response to the Inspector General’s Statement on the Peace Corps’ 


Management and Performance Challenges
 

To: Kathy A. Buller, Inspector General 

From: Aaron S. Williams, Director 

Date: November 8, 2010 

Subject:	 Agency Response to the Inspector General’s Statement on Management and 

Performance Challenges 

Thank you for your October 12, 2010 memorandum and attachment setting forth the Office of the 

Inspector General’s (OIG) determinations on management and performance challenges of the 

agency which will be included in the Performance and Accountability Report for fiscal year 2010. 

I would like to address the eight specific areas the OIG has identified as challenges for facing the 

agency as it keeps pace with its growth strategies and plans. 

FY 2009 Challenges 

Challenge	 Capacity of Peace Corps Business Operations to Support Growth and Expansion 

In support of the President’s goal to expand the size of the Peace Corps, targets were initially 

established to increase the number of Volunteers to 10,000 by the end of FY 2011, 12,000 by the 

end of FY 2012 and 14,000 by FY 2013. These goals have been revised to reflect a more gradual 

increase in the number of Volunteers in the out-years. For our 50th anniversary year, FY 2011, 

the agency’s target of 10,000, complies with the stated policy in the Peace Corps Act to maintain 

a Volunteer corps of at least 10,000 individuals. A more gradual increase in the number of 

Volunteers to 10,800 is planned for FY 2013. 

In FY 2010, Peace Corps assessed its business processes to determine the impact of increasing 

the number of new Volunteers. Increased appropriated resources were allocated to support 

growth areas while assuring a continuation of quality work. The Comprehensive Agency 

Assessment, an agency-wide assessment, was conducted during this year and submitted to 

Congress in June. This in-depth review evaluated operations across the agency and identified six 

key guiding strategies and 63 recommendations to strengthen and reform the agency over the 

coming years. The agency is committed to implementing the Comprehensive Assessment and 

believes the quality improvement measures included in the report will help position Peace Corps 

to improve the quality of operations as we increase Volunteer numbers. 

Systems improvement efforts are underway. The newly redesigned Volunteer Delivery System 

(VDS) supports the continuous cycle of Volunteer recruitment, screening, and placement. Peace 

Corps awarded a contract in the fourth quarter of FY 2010, to assist in the redesign of the 

supporting business processes to automate and streamline the entire cycle to dramatically 

improve the total cycle time, communications with Volunteer applicants, and retention rates. The 

new VDS is planned to be operational by the end of FY 2011. Additionally, the agency will 

acquire an electronic medical records system and redesign medical screening to support business 

processes in FY 2011, to be operational by the end of FY 2012. This will accelerate the medical 

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approval process, improve communications with applicants, and increase the quality of medical 

support for in-service Volunteers. 

In FY 2010, the agency restructured medical support operations to enhance the quality of health 

care services to the Volunteers. The realigned reporting structure will be fully realized in 

FY 2011 and will significantly improve accountability and delivery of services to Volunteers. 

The agency has defined and begun implementation of a process that will continue to strengthen 

the management of the Volunteer Safety and Security System. Specific steps have been taken to 

establish clear lines of technical oversight by the Office of Safety and Security to ensure the 

efficient and effective operation of the safety and security program, the top priority of the 

agency. 

Challenge Information Technology Management 

A new information technology (IT) strategic five-year plan and project portfolio, along with a 

reconstituted Investment Review Board (IRB) proposal, was presented to the agency’s senior 

management in early November 2010. This plan addresses many of the issues raised by the OIG 

in previous audit reports. 

The agency continues to consider continuity of operations an important IT priority and is 

improving Data Center operations. For example, in FY 2010, the agency added temperature and 

humidity monitoring, smart-UPS to automatically shut down the servers in emergencies, and 

physical access controls with privileged badge access and real-time data feeds from the five 

cameras. 

The agency certified and accredited three systems during FY 2010 in accordance with the 

Federal Information Security Management Act (FISMA) and the 2007 plan to certify and 

accredit appropriate Peace Corps systems. The only system not certified is the Volunteer Life 

Cycle Management System, which is still under development. That system will be certified after 

system development is completed in 2011. 

FISMA and financial audit recommendations identified as low risk related to legacy systems, or 

have remediation costs that substantially exceed implementation benefits in accordance with the 

provisions of OMB Circular A-130 may not be implemented; however, mitigation measures have 

been put in place to reduce potential risk to the agency. 

Challenge Acquisitions and Contract Management 

Despite the departures noted by the OIG, the Office of Acquisitions and Contract Management 

(OACM) is now fully staffed, with the exception of the chief acquisition officer position for 

which the hiring process will be completed in November 2010. The deputy acquisition officer 

position was filled with a very experienced senior contracting officer. Two seasoned supervisory 

contracting officers were hired for the domestic complement of contracting officers. 

Additionally, the overseas support staff was enhanced by the addition of a field-experienced 

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business specialist. In the fourth quarter of FY 2010, customer support service was increased due 

in large part to additional staffing, both overseas and domestic. 

Rapid progress is being made to strengthen contract surveillance and compliance with applicable 

laws and regulations. Contracting Officer’s Technical Representative (COTR) training has been 

scheduled for overseas staff in each of the three regions in the first quarter of FY 2011. This will 

intensify the development of contract surveillance plans. 

With respect to the White House’s initiative on reducing the use of high risk contracts, the 

agency terminated two cost reimbursement contracts in FY 2010 for overseas training and 

awarded fixed price personal services contracts to trainers. The agency currently has no cost 

reimbursement contracts. The agency will continue to improve the contracting processes with the 

goal of more efficient and cost effective contract support. 

Challenge Property Management 

Although the agency has challenges in property management accountability with the wide 

dispersal of property, plant, and equipment in 77 countries and multiple sites in the U.S., Peace 

Corps has been working diligently to improve the safeguarding, accounting, and disposal 

processes for its property: 

	 The contract for the new property accountability software solution referred to by the OIG 

was awarded in September 2010, and a specific training program is being developed for 

rollout with the software by the end of FY 2011. 

	 In FY 2010, the agency doubled the amount of property management training for 

personal property and vehicle accountability during overseas staff training. 

	 By September 2011, the planned certification of the agency’s IT assets will be completed. 

	 The Office of Management has clarified property accountability policies and procedures 

and the agency expects to issue a revised manual section and property accountability 

handbook in FY 2011. 

	 The agency has purchased a vehicle fleet management software system which is expected 

to be implemented by the end of FY 2011 and will provide the headquarters with 

oversight capabilities for vehicle usage and disposals. 

Challenge Protection of Personally Identifiable Information 

The implementation of the Volunteer Life Cycle Management System that is scheduled for 

implementation in FY 2011 will significantly reduce the risk of PII security breaches. This 

system will generate a unique identifier for each individual and Social Security numbers will no 

longer be used as search criteria. The system has rules and procedures for locking down PII and 

for allowing access to the information based on roles and responsibilities within the agency. 

Similar controls on medical information regarding Volunteers will be built into the electronic 

medical records system that is now scheduled to be operational by the end of FY 2012. 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 99 
 

 

 

 

 

Other Accompanying Information 

The number of reported breach events dropped from ten in FY 2009 to nine in FY 2010. With 

the introduction of the redesigned Volunteer Life Cycle Management System and electronic 

medical records, these breaches should be significantly minimized. 

FY 2010 New Challenges 

Challenge Capacity of Overseas Posts to Support Growth and Expansion 

The agency agrees that building the capacity of overseas posts and providing ongoing support to 

sustain quality growth is essential. The initial goals set for growth were subsequently revised to 

support a more gradual increase in the number of Volunteers to 10,800 by the end of FY 2013. 

This more gradual growth is due to several factors, including the agency’s commitment to 

strengthen Volunteer training and better prepare Volunteers for meaningful work, the uncertainty 

regarding future budget levels and the desire to ensure overseas posts are properly supported and 

prepared to absorb a greater number of Volunteers prior to the Volunteers arriving in country. 

To help achieve the desired increase in the number of Peace Corps Volunteers, the Director 

established an agency-wide growth task force during the first quarter of FY 2010. The task force 

examined ways in which this growth could be supported. Throughout the FY 2010 planning and 

budget processes, emphasis was placed on strengthening the capacity of overseas posts to meet 

the growth targets, in order to provide a larger number of well-qualified Volunteers for host 

countries. Several headquarters offices worked closely with the overseas posts to best match the 

supply of qualified applicants to the needs of Peace Corps’ overseas partners. 

Peace Corps’ Comprehensive Assessment conducted in FY 2010 places increased focus on the 

critical importance of Volunteer training and calls on the agency to identify key development 

interventions worldwide where the Peace Corps is, or will be, working with large quantities of 

Volunteers, and to enhance and strengthen the technical preparation for Volunteers in these 

areas. A quarterly reporting process was established in the fourth quarter of FY 2010 to capture 

progress toward implementation of the assessment recommendations. During FY 2010, the 

agency made significant investments in its human and physical infrastructure to accommodate an 

increase in the quantity of Volunteers while ensuring their safe and successful service, including: 

the length of pre-service training for new Volunteers was increased by one week; critical 

programming and administrative staff at overseas posts was expanded; the number of medical 

officers and safety and security coordinators were increased; site development was improved; 

and regional offices and transit houses within larger countries, especially in Africa, were set up 

to provide closer oversight and support services to Volunteers. A critical initiative in FY 2011 

will be to “focus in and train up”– to ensure strategic growth and strengthen agency performance, 

by identifying the highest priority programs and then improving staff and Volunteer capabilities 

in those sectors. 

Challenge Timely and Effective Remediation of OIG Findings and Recommendations 

The agency responses to prior audit reports and evaluations continue to be implemented in key 

business areas. With the newly assigned Chief Compliance Officer, the agency is benefitting 

100 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

 

 

 

 

 

Other Accompanying Information 

from more efficient reviews and more effective follow-up. Forty-four recommendations to 

audits, evaluations, and assessments issued in FY 2010 were closed during FY 2010. An 

additional 20 recommendations were closed for audits and evaluations conducted prior to 

FY 2010. 

The Director has also put in place a Senior Policy Committee, assisted by a Policy Secretariat 

and a new Associate General Counsel for Policy Development, to oversee the process of 

updating and maintaining the agency’s policies and procedures. This new senior level body will 

streamline the policy development process and allow the agency to respond in a more timely 

fashion to audit recommendations that require policy or procedural changes. 

Challenge Accessibility of Useful and Accurate Data Related to Peace Corps Operations 

The functionality of existing stand-alone systems used to track Peace Corps prospects, 

applicants, Volunteers and returned Volunteers is incorporated into the new Volunteer Life 

Cycle Management System. This will allow the agency to retire some 28 of the existing 64 

legacy systems related to Volunteer delivery, and provide a single database of Volunteer nonmedical data. With the implementation of the Volunteer Medical Records System, another 20 

legacy systems will be retired and provide a single Health Insurance Portability and 

Accountability Act (HIPAA) compliant database of Volunteer medical data. These two major 

systems will significantly improve the collection, analysis, and availability of data to support 

Volunteers throughout the life cycle. 

With respect to maintaining information related to employees, the agency has an employee 

trained to extract data reports from the National Financial Center which will provide data related 

to employee retention and turnover. 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 101 
 

0

Other Accompanying Information 

Summary of Financial Statement Audit 

and Management Assurances Tables 

Summary of Financial Statement Audit 

Audit Opinion Unqualified 

Restatement No 

Material Weaknesses Beginning 

Balance New Resolved Consolidated Ending Balance 

Total Material Weaknesses 0 0 0 0 0 

Summary of Management Assurances 

Effectiveness of Internal Control over Financial Reporting (FMFIA § 2) 

Statement of Assurance Unqualified 

Material Weaknesses Beginning 

Balance New Resolved Consolidated Reassessed Ending 

Balance 

Total Material Weaknesses 0 0 0 0 0 0 

Effectiveness of Internal Control over Operations (FMFIA § 2) 

Statement of Assurance Unqualified 

Material Weaknesses Beginning 

Balance New Resolved Consolidated Reassessed Ending 

Balance 

Total Material Weaknesses 0 0 0 0 0 0 

Conformance with Financial Management System Requirements (FMFIA § 4) 

Statement of Assurance Systems conform to financial management system requirements 

Non-Conformances Beginning 

Balance New Resolved Consolidated Reassessed Ending 

Balance 

Total Non-Conformances 0 0 0 0 0 0 

102 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

 

Other Accompanying Information 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 103 

Improper Payments Information Act
 

Agencies are required to annually review their program and activities to identify those payments susceptible to 

significant improper payments under the provisions of the Improper Payments Information Act of 2002, Public 

Law No. 107-300. effective in FY 2010, executive order 13520, reducing Improper Payments, implemented by 

oMB Memorandum, M-10-13, Subject: Issuance of Part III to oMB Circular A-123, Appendix C, established $750 

million as the threshold for reporting improper payments. The Peace Corps has no programs and activities that 

are risk-susceptible to such significant improper payments and no improper payments were identified this fiscal 

year internally or by the external auditors. 
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APPeNDICeS 

Community and Youth Development 

Volunteer greets children from a 

community where she is giving life skills 

training in Paraguay. 
 

0

Appendices 

Appendix 1 

Summary of Audit Significant Deficiencies 

The FY 2010 financial statement audit report issued by Clifton Gunderson LLP through the Inspector General 

on November 10, 2010, shown on pages 78 through 88 identified two significant deficiencies in internal control. 

Significant Deficiency 1, Controls over Property, Plant, and equipment Need Improvement, consists of four recommendations and the estimated dates for resolution of those recommendations are shown in the table below. 

Significant Deficiency 2, Information System Security Controls Need Improvement, consists of eight audit recommendations and the estimated dates for resolution of those recommendations are also shown in the table. 

Significant Deficiency 1 – Controls over Property, Plant, and Equipment Need Improvement 

Audit Recommendations 

Estimated 

Completion 

ensure asset listings are complete and develop procedures to tag assets upon receipt 4th Qtr FY 11 

Perform accuracy, verification, and completeness checks on capitalized property listings 

in accordance with the standard operating procedures for posts and headquarters 

4th Qtr FY 11 

Develop procedures to ensure additions and disposals are recorded accurately and timely 4th Qtr FY 11 

ensure the financial management system provides proper output for designated auditor 

reports 

1st Qtr FY 11 

Significant Deficiency 2 – Information System Security Controls Need Improvement 

Audit Recommendations 

Estimated 

Completion 

ensure risk assessment for Global Infrastructure is revised to incorporate critical 

regions reviewed, approved, and updated periodically 

4th Qtr FY 11 

Complete full certification and accreditation for all information systems 4th Qtr FY 11 

Complete, update and approve Manual Section 542, Information Technology Security 

Policies 

3rd Qtr FY 11 

reevaluate and update the Business Impact Analysis to reflect the current continuity of 

operations planning, support disaster recovery planning and testing, and reflect the 

agency’s current environment 

4th Qtr FY 11 

Develop and implement procedures to periodically audit network user accounts 3rd Qtr FY 11 

review audit logs on the domestic portion of the Global Infrastructure operating System 

periodically for suspicious activity 

4th Qtr FY 11 

Implement FDCC compliant group policies and ensure that workstations comply with 

the FDCC requirement checklists 

4th Qtr FY 11 

Maintain mandatory security settings and baseline configurations for oracle instances, 

UNIX servers, and Microsoft servers 

4th Qtr FY 11 

106 THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 
 

Appendices 

0

Appendix 2 

Glossary of Acronyms 

AC-2 Account Management (NIST SP 800-53) 

ATO Authority to Operate 

AU-6 Audit Monitoring, Analysis, 

and Reporting (NIST SP 800-53) 

CG Clifton Gunderson LLP 

CIS Center for Internet Security 

C&A Certification and Accreditation 

CM-2 Baseline Configuration (NIST SP 800-53) 

CM-5 Access Restrictions for 

Change (NIST SP 800-53) 

CM-6 Configuration Settings (NIST SP 800-53) 

COTR Contracting Officer’s 

Technical Representative 

DOL Department of Labor 

DOS Department of State 

FDCC Federal Desktop Core Configuration 

FECA Federal Employees Compensation Act 

FISMA Federal Information Security 

Management Act 

FMFIA Federal Managers’ Financial Integrity Act 

FSN Foreign Service National 

FY Fiscal Year 

GAO Government Accountability Office 

HQ Headquarters 

HIPAA Health Insurance Portability 

and Accountablity Act 

ICT Information and 

Communication Technology 

IPBS Integrated Planning and Budget System 

IRM Information Resources Management 

IT Information Technology 

MCS Medical Clearance System 

MD&A Management’s Discussion and Analysis 

MS Manual Section 

NGO Nongovernmental Organization 

NIST National Institute of 

Standards and Technology 

NIST SP National Institute of Standards 

and Technology Special Publication 

OACM Office of Acquisitions and 

Contract Management 

OCFO Office of the Chief Financial Officer 

OCIO Office of the Chief Information Officer 

OIG Office of the Inspector General 

OMB Office of Management and Budget 

OPM Office of Personnel Management 

PCA FA Peace Corps Assets Fixed Assets 

PEPFAR President’s Emergency Plan 

for AIDS Relief 

PII Personally Identifiable Information 

PL-2 System Security Plan (NIST SP 800-53) 

PP&E Property, Plant, and Equipment 

PSC Personal Services Contractor 

RA-3 Risk Assessment (NISP SP 800-53) 

RPCV Returned Peace Corps Volunteer 

SOP Standard Operating Procedures 

TEFL Teaching English as a Foreign Language 

UKW Urbach Kahn & Werlin LLP 

UNIX Computer Operating System 

USDH U. S. Direct Hire 

VDS Volunteer Delivery System 

VICA Volunteer In-Country Allowances 

THE PEACE CORPS :: PERFORMANCE AND ACCOuNTAbILITY REPORT :: FISCAL YEAR 2010 107 
This page was intentionally left blank 
Front cover: Peace Corps Response Volunteer teaches reading to children in 

Guyana. Above: Volunteer walks down the street in his new community with 

his students. 

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